JKL Insurance Company Estimates That 14 Out of Every 100

question 1

Multiple Choice

JKL Insurance Company estimates that 14 out of every 100 homeowners it insures will file a claim each year.Last year,JKL insured 200 homeowners.According to the law of large numbers,what should happen if JKL insures 2,000 homeowners this year?

• A)The total number of claims filed by JKL policyowners should decrease.
• B)The total dollar value of claims will decrease.
• C)The average size of loss will decline in value.
• D)The actual results will more closely approach the expected results.

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Definitions:

Independent

The state of being free from outside control or influence, capable of thinking or acting for oneself.

Pro-social Behaviors

Actions intended to benefit others, such as helping, sharing, and cooperating.

Good-enough Parenting

A concept suggesting that parenting doesn’t have to be perfect to raise well-adjusted children, but meeting basic needs and providing support and love is sufficient.

Baumrind

A psychologist known for her research on parenting styles, identifying three major approaches: authoritative, authoritarian, and permissive.