True or False: an Insurance Company Evaluates Many Variables About

question 124

True/False

True or False: An insurance company evaluates many variables about a person before deciding
on an appropriate rate for automobile insurance.A representative from a local insurance agency
selected a random sample of 100 insured drivers and recorded, X, the amount of claims each
made in the last 3 years.A Pareto chart can be used to present this information.

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries, used to control trade balances, protect domestic industries, or generate revenue.

Consumer Surplus

The gap between the total price consumers are prepared and able to pay for a service or product and the amount they really pay.

World Price

The international market price of a product or commodity, influenced by global supply and demand conditions.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no barriers to trade, such as tariffs or quotas, encouraging international commerce.