Applicant 1: Juanita is a 44-year-old woman who has never had a traffic citation. She is in excellent health. There is no question that she will qualify for auto insurance through the company. The question, that the company will determine, is how much her monthly payment will be for insuring her 2012 Nissan Sentra.

Applicant 2: Juan is a 21-year-old man who has had two speeding ticket citations. He is in excellent health. He is being considered for an auto insurance policy through his father’s insurance company.

The Actuarial Analyst studies the following charts to determine each of their risk factors.

Number of Claims Over $1000 Per Year

	16 – 24 yrs.	25 – 40 yrs.	41 – 56 yrs.	57 – 72 yrs.	73 years +	Total Number of Claims Over $1000 Per Year	Total Number of People Holding Policies
Number of Females with Traffic Infraction Record	64	50	41	35	40	230	700
Number of Females with No Infraction History	8	6	5	5	3	27	120
Number of Males with Infraction History	72	56	44	33	38	243	690
Number of Males with No Infraction History	5	7	7	5	4	28	100
Total in Each Age Group Making Claims	149	119	97	78	85	528
Total in Each Age Group Holding Policies	300	344	320	324	322		1610

Questions for The Actuarial Analyst:

What is the probability that Juanita, according to the data, will have an accident and/or a claim, over $1000, within a year, based on her being a female, between 41 and 56 years of age, with no infraction history?

Answer rating: 100% (QA)

The probability that Juanita according to ... View the full answer