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.

---

Definitions:

Trade

The practice, in a market economy, in which individuals provide goods and services to others and receive goods and services in return.

Specialize

Specialize refers to the process of focusing efforts and resources on a narrow area of expertise or production to gain efficiency, higher quality, or other advantages.

Comparative Advantage

An economic principle that states a country or individual can produce goods at a lower opportunity cost than others, leading to more efficient global trade outcomes.

France

A country in Western Europe known for its rich history, culture, and significant contributions to art, science, and politics.