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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Definitions:

Enthusiasm For Jobs

A high level of excitement and dedication towards one's work or employment.

Constant Interruptions

Recurring disruptions that break the continuity of work, leading to decreased productivity and increased stress.

Inventory Control

Management of inventory levels, orders, sales, and deliveries to ensure availability of goods without excessive supply.

Financial Problems

Difficulties in managing money, which may include maintaining cash flow, handling debt, or managing investments.