An Insurance Company Evaluates Many Numerical Variables About a Person

question 62

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 numerical variable.

---

Definitions:

Big Five Personality Factors

A model describing human personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Self-Serving Bias

is a cognitive bias where individuals attribute positive outcomes to their own actions and negative outcomes to external factors.

Insecurity

Feelings of uncertainty or anxiety about oneself; a lack of confidence or assurance in one's abilities or worth.

Trait Theory

The view that personality is made up of a number of key characteristics or traits that are relatively stable over time and influence behavior.