An automobile insurance company has determined the accident rate (probability of having at least one accident during a year) for various age groups. Suppose that a policyholder calls in to report an accident. What is the probability that they are over 60?
Age group Proportion of total insured Accident rate
Under 21 0.05 0.06
21-30 0.10 0.04
31-40 0.25 0.02
41-50 0.20 0.015
51-60 0.30 0.025
Over 60 0.10 0.04
