SCENARIO 2-1
An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance.A representative from a local insurance agency selected a random sample of insured drivers and recorded,X,the number of claims each made in the last 3 years,with the following results.
-Referring to Scenario 2-1,how many drivers are represented in the sample?
Definitions:
Annual Coupon Rate
A bond's yearly interest payment to its holders, expressed as a percentage of the bond's face value.
Maturity
The specified time at which the principal amount of a bond or loan is due to be paid back to the lender.
Call Premium
The additional amount that must be paid over the par value by the issuer to redeem a callable security before its maturity date.
Default Risk Premium (DRP)
The additional yield that investors demand for holding a bond that has a risk of default over a risk-free bond.
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