An Insurance Company Can Use the Law of Large Numbers

question 90

True/False

An insurance company can use the law of large numbers to predict the number of people in your community that will have a car accident in a given month.

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Definitions:

Secretary of the State

A high-ranking official typically responsible for keeping public records, administering elections, and managing the affairs of the state government.

S Corporation

A special form of corporation in the United States that allows for the income, losses, deductions, and credits to be passed directly to shareholders to avoid double taxation.

LLC

A Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Double Taxed

The imposition of two or more taxes on the same income, asset, or financial transaction.