SCENARIO 2-1 An Insurance Company Evaluates Many Numerical Variables About a Person

question 80

Multiple Choice

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.

-A type of vertical bar chart in which the categories are plotted in the descending rank order of the magnitude of their frequencies is called a

• A)contingency table.
• B)Pareto chart.
• C)stem-and-leaf display.
• D)pie chart.

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Definitions:

Encoding

The process of converting information or data into a particular form, often for storage, transmission, or encryption purposes.

Decoding

The process of interpreting and understanding communication signals or symbols.

Abstracting

The process of summarizing or condensing a larger piece of information into a brief overview or abstract.

Indexing

A method of organizing data in a database or other system to improve search speed and efficiency.