A Motorcycle Insurance Company Evaluates Many Numerical Variables About a Person

question 200

Short Answer

A motorcycle insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for motorcycle insurance.The distance a person rides in a year is an example of a(n)____________________ random variable.

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Definitions:

Administrative

Relates to the daily operations and management tasks within an organization, including paperwork and office procedures.

Fixed Cost Element

A cost that does not vary with the level of production or sales, such as rent, salaries, and insurance expenses.

Mixed Cost

A cost that contains both fixed and variable components and changes with the level of activity, but not proportionately.

CVP Analysis

Cost-Volume-Profit (CVP) analysis is a managerial accounting technique used to determine the effects of changes in costs and volume on a company's profits.