An Insurance Company Evaluates Many Numerical Variables About a Person

question 40

Short Answer

An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance. The number of claims a person has made in the last 3 years is an example of a(n)______ numerical variable.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of another entity, without having control over those policies.

Investment Account

A type of account held at a financial institution that holds securities, cash, and other assets in the name of the investor.

Shares Sold

Refers to the number of shares of stock that have been bought and sold by investors over a given period, indicating trading activity and liquidity.