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:

Positive Accounting Theory

An accounting theory that seeks to explain and predict accounting practices, focusing on the relationships between various parties involved in accounting.

Political Contracts

Agreements made in the context of political relations, often involving government entities, which can encompass a wide range of subject matter from trade to defense.

Managerial Contracts

Agreements outlining the terms and responsibilities between managers and the entity they manage, often including performance criteria, duties, and compensation.

Professional Judgement

The application of knowledge, expertise, and experience to make informed decisions within the context of professional practices.