The Use of Frequency and Severity Data Is Very Important

question 50

True/False

The use of frequency and severity data is very important to both insurers and firm managers concerned with judging the risk of various endeavors.

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Definitions:

Manufacturing Costs

The total expenses involved in the process of producing goods, including labor, materials, and overhead costs.

Levi Strauss

An iconic American clothing company known primarily for its denim jeans.

Future Benefits

The anticipated positive outcomes or returns that are expected to be received in the future as a result of current investments or actions.

Liabilities

Financial obligations or debts owed by a business to others, such as loans, accounts payable, and mortgages, which need to be settled over time.