If the Probability That One Person Will Develop a Health

question 94

Multiple Choice

If the probability that one person will develop a health problem is greater than that of another person and if they buy insurance from the same provider,the person with a higher probability will MOST likely pay:

• A)the same as the other person.
• B)more than will the person with the lower probability.
• C)less than will the person with the lower probability.
• D)All people,regardless of probabilities,pay the same amount for insurance.

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Definitions:

Pro Forma Statements

Financial statements that project the future financial performance of a company based on current and historical data.

Financial Plans

Structured approaches to managing finances that encompass goals, strategies for achieving them, and an analysis of resources and expenditures.

Future Time Periods

Specific intervals or durations in the future during which certain financial or operational activities are expected to occur.

Capital Intensity Ratio

A metric showing the amount of capital needed per dollar of revenue; high ratios indicate a significant investment in physical capital to generate sales.