HELP VERY IMPORTANT

Question

Researchers at an auto insurance company are studying the ages of its policyholders and the number of accidents per 10 policyholders. The researchers compared each year of age from 16 to 65. After analyzing the data, the researchers found that as age increases, the number of accidents per 10 policyholders decreases.

 

The variable(s) 

(select)is the number of policyholdersare the age in years and the number of policyholdersare the age in years and the number of accidents per 10 policyholdersis the age in the years

.

 

The 

(select)lowerg,reater

 age corresponds to a 

(select)greater,lower

 number of accidents per 10 policyholders, so there is a 

(select)negatie, positive

 correlation. Causation is 

(select)not possible, possible

. It is possible that the age of the driver causes safer driving and therefore fewer accidents because of experience and maturity. However it is also possible that both the age group and accident rate depend on another variable such as likelihood of living in the city or likelihood of driving a car with antilock brakes or other advanced safety features.

Answer 1

You don't show the actual data, but their conclusion was that as age increases, the number of accidents per 10 policyholders decreases. If that's the case, then there is a negative correlation between age and accident rate. The explanations that are cited seem perfectly valid. I could also add that older people may just not drive as much. They should add a miles-driven factor to their analysis.

I should add that, despite the correlation data, my auto insurance company has a factor built into my premium, so that my rate increases each year past a certain age.. Also, talk to the people who live in Florida, home to lots of retirees!