An Insurance Company Evaluates Many Variables About a Person Before

question 8

True/False

An insurance company evaluates many 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 100 insured drivers and recorded X, the amount of claims each made in the last 3 years. A Pareto chart can be used to present this information.

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Definitions:

Solve

The method of identifying a solution or resolution for a mathematical equation or problem.

Inequality

A mathematical statement illustrating the relationship between two expressions that are not equal, using symbols such as <, >, ≤, or ≥.

Absolute Value

The distance of a number from zero on the number line, regardless of direction; denoted by |x|.

Equation

A mathematical declaration that affirms two expressions, usually containing variables, are equal.