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

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TABLE 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. TABLE 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 Table 2-1, how many drivers are represented in the sample? A)  5 B)  15 C)  18 D)  50
-Referring to Table 2-1, how many drivers are represented in the sample?


Definitions:

Payback Period

The time it takes for an investment to generate an amount of income or cash flow to recoup the initial capital cost.

Net Present Value

Net present value (NPV) is a financial metric used to evaluate the profitability of an investment, calculated by subtracting the initial investment from the sum of all future cash flows discounted back to their present value.

Future Net

Refers to projected future networks or internet technologies that aim to surpass the current capabilities and standards.

Present Values

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

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