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 $00.1210.1960.38510.0860.0740.080>10.0250.0140.019\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Number of accidents } \\\text { in past 3 years }\end{array} & \text { Under 25 } & 25 - 45 & \text { Over 45 } \\\hline 0 & 0.121 & 0.196 & 0.385 \\\hline 1 & 0.086 & 0.074 & 0.080 \\\hline > 1 & 0.025 & 0.014 & 0.019 \\\hline\end{array}$ 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

Question

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

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

Malik Shabbir · Accepted Answer

Final Answer : E, Explanation :  To find the probability that a randomly selected person is aged over 45, we add the probabilities for all categories within the Over 45 age group: 0.385 (for 0 accidents) + 0.080 (for 1 accident) + 0.019 (for more than 1 accident) = 0.484.

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