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

question 66

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.

-Referring to Scenario 2-1,how many drivers are represented in the sample?

• A)5
• B)15
• C)18
• D)50

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Definitions:

Performance Evaluation

This is the process of assessing and reviewing an employee’s work performance using defined benchmarks, with the aim of understanding their abilities for further growth and development.

Differential Rewards

A system where rewards are varied based on the performance or behavior of individuals or groups.

Attribution Theory

A theory that explains how individuals pinpoint the causes of their own and others’ behavior.

General Mental Ability

An individual's overall capacity to think abstractly, reason, plan, solve problems, comprehend complex ideas, learn quickly, and learn from experience.