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An Insurance Company Evaluates Many Numerical Variables About a Person

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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:

Effective

Achieving desired outcomes or goals with efficiency, often denoting success in accomplishing tasks or objectives.

Creativity

The use of imagination or original ideas to create something; inventiveness.

Types Of Decisions

Decisions can be categorized based on complexity, urgency, and impact, such as strategic, tactical, operational, and routine decisions.

Equity Theory

A concept in social psychology that posits individuals are motivated by fairness, and if they identify inequalities in the input-outcome ratios compared to others, it will result in work-related tensions.

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