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An Insurance Company Evaluates Many Variables About a Person Before

question 23

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An insurance company evaluates many 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 15 insured drivers and recorded the amount of claims each made in the last 3 years. Based on this information, which of the following will you construct to learn about the average amount of claims made by the company's customer?

Assess the effects of changes in balance sheet accounts on cash flow statements.
Calculate net cash provided by or used in financing activities.
Understand the preparation and interpretation of a statement of cash flows.
Analyze the effect of cash dividends on financing activities.

Definitions:

Coercive Power

Coercive power is an authoritative strategy based on the fear of punishment or the enforcement of discipline to influence others to comply with demands or expectations.

Withhold Positive Outcomes

A strategy or action where expected or deserved positive results are deliberately not provided or delayed.

Influence

The capacity or power to affect or shape the behavior, development, character, or decisions of others or the outcome of events.

Power

The ability to influence or control the behavior of people, institutions, or events.

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