An Auto Insurance Company Evaluates Many Numerical Variables About a Person

question 58

Short Answer

An auto insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance.The number of claims a person has made in the last 3 years is an example of a(n)____________________ random variable.

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Definitions:

Auto Dealer

A business that sells new or used automobiles at the retail level, typically based on a dealership contract with an automaker or sales subsidiary.

Obligor

An obligor, in a financial context, refers to the party who is legally bound, or obligated, to make a payment or fulfill a contract term to another party, the obligee.

Assignee

The person to whom contract rights are assigned.

Proper Notice

Adequate information or warning provided in advance, as required by law or agreement, to enable appropriate response or action.