An Insurance Company Evaluates Many Numerical Variables About a Person

question 72

Short Answer

An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance.How long a person has been a licensed driver is an example of a numerical variable.

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Definitions:

Big Five

A theory in psychology that identifies five main personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism, used to describe human personality.

Correlated

When two or more variables have a mutual relationship or connection, where changes in one variable reflect changes in another.

Extraverted

A personality trait characterized by an orientation of one's interests and energies toward the outer world of people and social activities, as opposed to the inner world of thoughts and feelings.

Cohort

A cohort refers to a group of people banded together or treated as a group, especially in a study or research context, often sharing a common characteristic or experience.