TABLE 2- 1
an Insurance Company Evaluates Many Numerical Variables $$\begin{array} { l l } \hline \mathrm { X } & \mathrm { f } \\\hline 1 & 14 \\2 & 18 \\3 & 12 \\4 & 5 \\5 & 1 \\\hline\end{array}$$

question 122

Multiple Choice

TABLE 2- 1
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.
$$\begin{array} { l l } \hline \mathrm { X } & \mathrm { f } \\\hline 1 & 14 \\2 & 18 \\3 & 12 \\4 & 5 \\5 & 1 \\\hline\end{array}$$
-Referring to Table 2-1, how many total claims are represented in the sample?

• A) 50
• B) 15
• C) 111
• D) 250

---

Definitions:

Sales Volume

Sales Volume is the total number of units of a product or service sold within a specific time frame, used as a measure of business performance or market demand.

Total Number

The complete count or quantity of items within a set.

Machine Bureaucracy

A highly structured form of organization characterized by a top-down approach, strict rules, and defined hierarchical structure, optimizing for efficiency.

Simple Structure

An organizational design characterized by a low degree of departmentalization, wide spans of control, centralized authority, and minimal formalization.