CR7.11 According to a study conducted by a risk assessment firm (Associated Press, December 8, 2005), drivers residing within 1 mile of a restaurant are 30% more likely to be in an accident in a given policy year. Consider the following two events:

A 5 event that a driver has an accident during a policy year R 5 event that a driver lives within 1 mile of a restaurant Which of the following four probability statements is consistent with the findings of this survey? Justify your choice.

i. PsAuRd  .3 iii.

PsAuRd PsAuRCd

 .3 ii. PsAuRCd  .3 iv.

PsAuRd 2 PsAuRCd PsAuRCd

 .3