Contact a local auto insurance company and ask them on average how often an auto insurance policyholder makes a claim. Then ask them how many people have auto insurance policies with their company.

Then calculate the probability that no more than one person who has an auto insurance policy will make a claim.
Then calculate the probability that no more than two people who have auto insurance policies will make a claim.
Then calculate the probability that five or fewer people who have auto insurance policies will make a claim.
Then calculate the probability that half the people that have auto insurance policies will make a claim.
Analyze your findings. Describe what happens with the probability of making a claim. Let’s go back to the original problem, why do you think car insurance is expensive? How do you think car insurance companies determine how much to charge someone for car insurance?