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Respond to the following questions in a minimum of 175 words: Consider a situation that you...

Respond to the following questions in a minimum of 175 words: Consider a situation that you might need to use your understanding of probability to make an informed decision. What sorts of information would you collect? How might you use what you have learned about probability to determine a course of action? What are the possible benefits and limitations of this approach?

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Probability is the mathematical term for the likelihood that something will occur. Probability plays an important role in analyzing insurance policies to determine which plans are best for you or your family and what deductible amounts you need.
When choosing a car insurance policy, you use probability to determine how likely it is that you'll need to file a claim. For example, if 12 out of every 100 drivers -- or 12 percent of drivers -- in your community have hit a deer over the past year, you'll likely want to consider comprehensive -- not just liability -- insurance on your car. You might also consider a lower deductible if average car repairs after a deer-related incident run $2,800 and you don't have out-of-pocket funds to cover those expenses.
Thus, by using this people who drive safely and are good drivers have to pay less premium.
Also, if you spend more on a safer car then you get the benefit of paying less premium as chances of accidents are lesser.
Thus by using this there are many advantages for better drivers driving safer cars.
But, in case of people who are not good drivers or have older unsafe cars will end up paying higher premium.

P.S. (please upvote if you find the answer satisfactory)

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