An Automobile Insurance Company Is in the Process of Reviewing

Multiple Choice

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. The 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 1,300 insured drivers 25 years or older have been involved in at least one automobile accident. An accident has just been reported. What is the probability that the insured driver is under the age of 25?

A) 35%
B) 20.5%
C) 14%
D) 68.3%
E) 40%