Which of the Following Is a False Statement

question 45

Multiple Choice

Which of the following is a false statement?

• A) Risk averse people will pay an insurance premium that is greater than the mathematically fair chance of loss in order to relieve themselves of uncertainty.
• B) A risk seeker is willing to assume risk.
• C) The mathematically fair price for insurance is the objective risk for the insurer multiplied by the maximum possible loss.
• D) Insurance is never a mathematically fair trade because the insurer adds several operating and other costs to loss costs when it calculates the premium.

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Definitions:

Morphemes

The smallest grammatical units in a language that carry meaning, such as prefixes, suffixes, and roots.

Words

The basic units of language composed of one or more phonemes that convey specific meanings and can be spoken, written, or signed.

Sentences

Grammatically complete sequences of words conveying thoughts, statements, questions, or commands.

Comprehend

To grasp or understand the meaning of something thoroughly.