For drivers in the 20-24 age bucket, there is a 34% rate of car accidents in...

For drivers in the 20-24 age bucket, there is a 34% rate of car accidents in one year. An insurance investigation finds that in a group of 500 randomly selected drivers aged 20-24 living in New York, 42% had accidents in the last year.

a. Assuming the same 34% rate applies, find the mean and standard deviation for the number of people in groups of 500 that can be expected to have accidents.

b. How many drivers in the New York City group of 500 had accidents in the last year. Is this unusually high? Explain you answer.

c. According to these results, why would drivers in the 20-24 age bracket have a higher insurance premium in New York City?

Expert Solution

orchestra answered 1 year ago

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