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

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Definitions:

Aggregate Demand

The full quantum of desire for goods and services within an economic realm, set against a particular overarching price level for a fixed duration.

Depression

A severe and prolonged downturn in economic activity, characterized by high unemployment, sharp declines in GDP, and faltering business confidence.

Investment

The process of distributing funds or assets in anticipation of earning returns or profits.

Classicals

Economic theorists and policy makers from the 18th and 19th centuries who focused on free markets, competition, and the ideas of self-regulating economies.