TABLE 2-2 An Insurance Company Evaluates Many Numerical Variables About a Person

question 211

Multiple Choice

TABLE 2-2
An insurance company evaluates many numerical 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 insured drivers and recorded, X, the number of claims each made in the last 3 years, with the following results.

-A type of vertical bar chart in which the categories are plotted in the descending rank order of the magnitude of their frequencies is called a

• A) contingency table.
• B) Pareto chart.
• C) dot plot.
• D) pie chart.

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Definitions:

Accounts Receivable

Outstanding amounts due from clients to a company for products sold or services utilized, awaiting payment.

Cash Collected

The total amount of money received by a company during a specific period.

Sales Reported

The total revenue recognized from selling goods or services, as documented in financial statements or reports.

Financing Activity

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) and creditors (debt financing).