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 14

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 drivers are represented in the sample?

• A) 15
• B) 5
• C) 18
• D) 50

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Definitions:

Flexible Budget

A budget that adjusts or scales according to the actual level of activity or volume of production, helping companies better manage costs and resources.

Patient-Visits

The number of encounters or visits made by patients to a healthcare provider or facility within a specified period.

Revenue And Spending Variances

Differences between the actual and budgeted amounts on both the revenue side and the expenditure side, indicating the financial performance over a certain period.

Customers Served

The number of customers that have been provided with products or services by a business during a specific time period.