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.

---

Definitions:

Output

The total amount of goods or services produced by a company, individual, or process within a given time frame.

MC

MC, or Marginal Costs, refers to the cost associated with producing an additional unit of a good or service, highlighting the incremental expense of production expansion.

AC

Typically refers to Air Conditioning, a system used for cooling and sometimes heating depending on the air properties needed.

Total Costs

The aggregate amount of all costs associated with the production or offering of goods and services, including fixed and variable costs.