An insurance company has compiled the accompanying data relating the age of drivers and the accident...

An insurance company has compiled the accompanying data relating the age of drivers and the accident rate (the probability of being involved in an accident during a 1-year period) for drivers within that group. Age Group Insured Drivers (%) Accident Rate (%) Under 25 16 5.5 25–44 40 3.5 45–64 30 2 65 and over 14 5 What is the probability of the following? (Round all answers to two decimal places.) (a) An insured driver selected at random will be involved in an accident during a particular 1-year period. (b) An insured driver selected at random who is involved in an accident is under 25.

Expert Solution

orchestra answered 2 years ago

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