Provide an Appropriate Response $\$ 250$
B: If the Company Sells Only a Few Policies

question 38

Multiple Choice

Provide an appropriate response.
-An insurance company sells an insurance policy for $1000. If there is no claim on a policy, the company makes a profit of $1000. If there is a claim on a policy, the company faces a large loss on
That policy. The expected value to the company, per policy, is $250.
Which of the following statements is (are) true? A: The most likely outcome on any single policy is a profit for the company of $\$ 250$ .
B: If the company sells only a few policies, its profit is hard to predict.
C: If the company sells a large number of policies, the average profit per policy will be close to \$250.

• A)B and C
• B)A and C
• C)B only
• D)C only

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Definitions:

Social Competence

The ability of an individual to interact effectively with others in various social contexts, demonstrating acceptable and adaptive behavior.

Authoritative

Refers to an approach, particularly in parenting or leadership, characterized by a balance between demandingness and responsiveness.

Self-Control

The capacity to manage personal feelings, ideas, and actions when confronted with desires and sudden urges.

Neglectful

Failing to care for or give proper attention to someone or something, often resulting in harm or lack of development.