Which of the Following Is an Example of Statistical Discrimination

question 143

Multiple Choice

Which of the following is an example of statistical discrimination?

• A)Auto insurance providers charge higher premiums to drivers of cars that are more likely to be stolen.
• B)The government mandates that all drivers must have auto insurance.
• C)Auto insurance providers offer perks to customers who have been with the provider for a longer period of time.
• D)All of these are examples of statistical discrimination.

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Definitions:

Noncontrolling Interest

A minority stake in a corporation, where the share does not offer control over the company's operations.

Initial Value Method

A type of accounting for investments where the investment is recorded at its cost at the time of acquisition, without subsequent change for increases or decreases in value.

Noncontrolling Interest

A share of equity in a subsidiary not held by the parent company, reflecting the interest of minority shareholders.

Initial Value Method

An accounting approach where investments are recorded at their acquisition cost, without subsequent adjustments for market fluctuations.