Examlex

Solved

Suppose Automobile Insurance Companies Gave Annual Premiums for Top-Rated Companies

question 26

Multiple Choice

Suppose automobile insurance companies gave annual premiums for top-rated companies in several states. The figure below shows box plots for the annual premium for urban customers in three states. Suppose automobile insurance companies gave annual premiums for top-rated companies in several states. The figure below shows box plots for the annual premium for urban customers in three states.   Which state has the smallest range of premiums? A) Texas has the smallest range of premiums. B) California has the smallest range of premiums. C) Texas as well as Pennsylvania have the smallest range. D) Pennsylvania has the smallest range of premiums. E) none of these choices Which state has the smallest range of premiums?


Definitions:

Net Present Value

A financial metric that calculates the present value of all future cash flows produced by an investment, minus the initial investment cost, to evaluate its profitability.

Earnings Rate

The rate of return on an investment or project, often expressed as a percentage of the investment's cost.

Compound Interest

This refers to the calculation of interest on the beginning balance of a loan or deposit, adding in the interest that has built up over time from prior periods.

Present Value

The value as of now of a future amount of money or subsequent cash flows, based on a chosen return rate.

Related Questions