An insurance company states in its automobile insurance policy that in case of an accident, it...

An insurance company states in its automobile insurance policy that in case of an accident, it uses the formula P = (x - x^4/5) (y-18 / 50) to determine how much to reimburse a policyholder, where x is the value of the car at the time of the accident and y is the age of the person driving. The policyholder must sign a document indicating agreement with this procedure for determining reimbursement amounts. Joe, a 70 year old policyholder, was driving his car when he had an accident. The car was valued at $7800 at the time of the accident. The insurance company sends him a check for $7760.84. Use the formula above to find the amount he should have been reimbursed. Should Joe contact the insurance company and report this mistake?

Expert Solution

milcah answered 2 years ago

An automobile insurance company has determined the accident rate (probability of having at least one accident...

An automobile insurance company has determined the accident rate (probability of having at least one accident during a year) for various age groups (see Table). Suppose that a policyholder calls in to report an accident. What is the probability that he or she is over 60? over 60 - proportion of total insured .10 & accident rate =0.06 (erased on table and could not add it back on accident ) What is the the probability that he or she is...

Your automobile insurance policy contains policy limits of 100/300/75. If you have an accident in which...

Your automobile insurance policy contains policy limits of 100/300/75. If you have an accident in which you are deemed at fault and two people sustain bodily injuries that result in combined claims of $100,000, and there is property damage in the amount of $125,000, how much of the property damage will be covered under your insurance policy? Select the correct answer $125,000 $225,000 $100,000 $300,000 $75,000

An insurance agent is curious if there was a difference between the automobile accident rates for...

An insurance agent is curious if there was a difference between the automobile accident rates for single drivers and married drivers. A random sample of 1,000 insurance policies included 572 single drivers and 428 married drivers. During the previous three years, 176 of the single drivers and 152 of the married drivers had been involved in at least one accident. Compute the test statistic for a hypothesis test to compare the population proportions of accidents. Assume that the conditions for...

Kyle has a split limit 100/300/50 automobile insurance policy. Several weeks ago, he was in accident...

Kyle has a split limit 100/300/50 automobile insurance policy. Several weeks ago, he was in accident in which he was found to be at fault. Five passengers were injured in the accident. Each of the passenger will be awarded $80,000 as consequences of Kyle's negligence. Calculate the amount that will be covered by insurance policy and amount that Kyle will pay out from his pocket. Explain each amount incurred

Question: Temple Insurance Company Temple Insurance Company (TIC) provides automobile insurance throughout the United States. Last...

Question: Temple Insurance Company Temple Insurance Company (TIC) provides automobile insurance throughout the United States. Last year, a new president was hired by TIC's board of directors to improve the company's competitiveness and customer service. After spending months assessing the situation, the new president introduced a strategic plan to strengthen TIC's competitive position. He also replaced three vice presidents. Jim Leon was hired as vice president of Claims (TIC's largest division) with 1500 employees, 50 claims centre managers, and 5...

A car accident expert is assigned to a case where the insurance company suspects the car...

A car accident expert is assigned to a case where the insurance company suspects the car company to use lower quality steel (lower TS) than the standards in their bumpers. The expert is given a post-crash bumper to run his test on. Since the bumper is completely deformed, he cannot place it into the normal bumper tensile tester. He is thinking about running a hardness test on the deformed bumper to estimate the TS of the steel to test the...

An automobile insurance company is in the process of reviewing its policies. The company is considering...

An automobile insurance company is in the process of reviewing its policies. The company is considering increasing the premium charged to drivers under 25. According to company records, 35 percent of the insured drivers are under the age of 25. Company records also show that 280 of the 700 insured drivers under the age of 25 have been involved in at least one automobile accident. On the other hand, only 130 of the 1300 insured drivers 25 years or older...

You, a car accident investigation expert, are assigned a case where the insurance company suspects that...

You, a car accident investigation expert, are assigned a case where the insurance company suspects that the car company did not properly account for the fatigue failure when designing the axle of their car. You are given a sample of a broken front-right axle to determine if the axle failure was a fatigue failure. You were told that the axle broke when the car traveling at 45 mph hit a pothole in the road. How will you most efficiently determine...

You have been hired as an expert witness in a case involving an automobile accident. The...

You have been hired as an expert witness in a case involving an automobile accident. The accident involved car A of mass 1500 kg, which crashed into stationary car B of mass 1100 kg. The driver of car A applied his brakes 15 m before he skidded into car B. After the collision, car A slid 18 m while car B slid 30 m before coming to rest. The coefficient of kinetic friction between the locked wheels and the road...

An automobile insurance company predicts that 15% of policy holders file a claim within the next...

An automobile insurance company predicts that 15% of policy holders file a claim within the next year. Since this company has many policy holders, we may assume that filing a claim is independent between policy holders. a. If 15 policy holders are randomly selected, what is the probability that exactly two will file a claim within the next year? What calculator command and inputs did you use? b. If 15 policy holders are randomly selected, what is the probability that...

Question