An Insurance Company Evaluates Many Numerical Variables About a Person

question 202

Short Answer

An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance.The number of tickets a person has received in the last 3 years is an example of a numerical variable.

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Definitions:

Operating Activities

Activities that are directly related to running a business and generating revenue, such as sales and purchasing materials.

Operating Expenses

Costs associated with running a business's core operations, excluding the cost of goods sold.

Depreciation Expense

The methodical distribution of the expense of a physical asset throughout its expected lifespan.

Cash Payments

Transactions that involve the outflow of cash to settle obligations or purchase goods and services.