If the Proportion of High Risk Drivers Is Too High

question 24

Multiple Choice

If the proportion of high risk drivers is too high, then:

• A)only low risk drivers will buy insurance.
• B)both high and low risk drivers will buy insurance.
• C)only high risk drivers will buy insurance.
• D)no one will buy insurance.

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Definitions:

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.

FIFO

"First In, First Out," an inventory valuation method where goods first received are the first ones sold.

LIFO

"Last In, First Out," an inventory valuation method where the last items added to inventory are the first ones to be used or sold.

Average Cost

This refers to the cost of producing a good or service, calculated by dividing the total costs of production by the number of units produced.