Core Connections Integrated II, 2015
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Core Connections Integrated II, 2015 View details
2. Section 12.2
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Exercise 132 Page 696

Compare the percentage of drivers who drive red cars and speed to the percentage of drivers in general who speed.

The company should not charge a premium.

Practice makes perfect
If the drivers in red cars are more prone to speeding, the percentage of drivers who drive red cars and go too fast should be greater than the percentage of drivers who drive too fast in general.

P(Speeding|Red car)&=9/348≈ 0.025 [1em] P(Speeding)&=507/20 000≈ 0.025 As we can see, the percentage of people who speed is not affected by the color of the car.