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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