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Consider a car insurance company and its desire to further examine the breakdown of profit within its client base. This is very pragmatic, because a
Consider a car insurance company and its desire to further examine the breakdown of profit within its client base. This is very pragmatic, because a systematically run organization such as a car insurance company will have volumes of stored statistical data on individual client records. The firm has been experiencing a slight decline in profit for the last few years and decided to analyze its client base to see if there are any categories that could generate additional revenue. The firm organizes its database information into two basic demographics: men and women. From there, the clients are broken down into two different age categories: 16 to 40, and 41 and older. The firm has decided to take a blind sample poll of its client base, using equal numbers of randomly assigned surveys in each of the two age categories among both men and women. The data from these random trials can be further broken down into individuals who have had no more than one car accident (that is, zero or one) in the past two years and individuals who have had two or more accidents in the past two years. Furthermore, the firm has probabilistically calculated the chances that an
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