In General,the Presence of Insurance Against the Negative Outcome of an Event

question 123

Multiple Choice

In general,the presence of insurance against the negative outcome of an event (e.g. ,fire insurance) tends to

• A) lessen the likelihood of the event.
• B) have no effect on the likelihood of the event.
• C) raise awareness of the event.
• D) decrease the incentive to prevent the event.
• E) increase the incentive to prevent the event.

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Definitions:

Range

The difference between the highest and lowest values in a dataset.

Coefficient Of Variation

A standardized measure of the dispersion of a probability distribution or frequency distribution.

Chebysheff's Theorem

A statistical theorem that provides a minimum probability for the distribution of values within k standard deviations from the mean for any data set, regardless of the distribution's shape.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values from the average.