Xr03-76 To determine premiums for automobile insurance, companies must have an understanding of the variables that affect whether a driver will have an accident. The age of the driver may top the list of variables. The following table lists the number of drivers in the United States, the number of fatal accidents, and the number of total accidents in each age group in 2002.

a. Calculate the accident rate (per driver) and the fatal accident rate (per 1,000 drivers) for each age group.

b. Graphically depict the relationship between the ages of drivers, their accident rates, and their fatal accident rates (per 1,000 drivers).

c. Briefly describe what you have learned.

Number of Number of Number of Drivers Accidents Fatal Age Group (1,000s) (1,000s) Accidents Under 20 9,508 3,543 6,118 20–24 16,768 2,901 5,907 25–34 33,734 7,061 10,288 35–44 41,040 6,665 10,309 45–54 38,711 5,136 8,274 55–64 25,609 2,775 5,322 65–74 15,812 1,498 2,793 Over 74 12,118 1,121 3,689 Total 193,300 30,700 52,700