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:

Good Moods

Emotional states that are characterized by feelings of happiness, satisfaction, and optimism.

Egoistic Motives

Refers to actions driven by self-interest, where the primary intention is to benefit oneself rather than others.

Altruistic Motives

Reasons behind actions that are primarily concerned with the welfare or benefit of others, without personal gain.

Reciprocity

A social norm of responding to a positive action with another positive action, rewarding kind actions.