1. An insurance company classifies drivers as low-risk, medium-risk, and high-risk. Sixty percent of those insured are low-risk, 30% are medium-risk, and 10% are high-risk. After a study, the company finds that during a one-year period, 1% of the low-risk have an accident, 5% of the medium-risk have an accident, 9% of the high-risk have an accident. If a driver is selected at random, what is the probability that the driver will have an accident during that year (P(A) = ___)? Define the simple events necessary to answer the question. H: Event driver is high risk M: Event driver is medium risk L: Event driver is low risk A: Event driver has an accident A similar application is worth a boatload of points on exams. A. Provide the probability statements (for these simple events) with their probabilities based on the information given in the scenario. Do not provide any numbers in your written work for parts B, C, and D. B. Provide a tree diagram. Show the appropriate probability statements. No numbers. 2. (LOA), (MOA), and (HA) are: Observe: P(LOA) = P(MOA) = P(HOA) = C. Provide a Venn diagram showing the appropriate events. Observe: 1. A = D. Provide the sequence of 3 formulas necessary to determine the probability that the driver will have an accident during that year? Justify how the formulas were developed (i.e., provide your strategies used to develop the three formulas). No numbers. P(A) =