An insurance company believes that drivers can be divided into two classes, those that are of high risk and those that are of low risk. Their statistics show that a high-risk driver will have an accident at some time within a year with probability 0.4, but this probability is only 0.1 for low-risk drivers. Assume 20% of the drivers are high-risk. If a new policy holder does not have any accident within a year of purchasing a policy, what is the probability that he is a low-risk type driver? (round your answer to 3 decimal places) O 0.857 O 0.500 O 0.160 O 0.143

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Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.