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An Auto Insurance Company Was Interested in Investigating Accident Rates

Question 26

Multiple Choice

An auto insurance company was interested in investigating accident rates for drivers in different age groups.The following table was based on a random sample of drivers and classifies drivers by age group and accident rate. Age Group  Number of accidents  in past 3 years  Under 25 2545 Over 45 00.1210.1960.38510.0860.0740.080>10.0250.0140.019\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Number of accidents } \\\text { in past 3 years }\end{array} & \text { Under 25 } & 25 - 45 & \text { Over 45 } \\\hline 0 & 0.121 & 0.196 & 0.385 \\\hline 1 & 0.086 & 0.074 & 0.080 \\\hline > 1 & 0.025 & 0.014 & 0.019 \\\hline\end{array} Suppose one of these people is selected at random.Compute the probability that the person is aged over 45.


A) 0.548
B) 0.385
C) 0.080
D) 0.795
E) 0.484

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