Average Severities Projection Method Uses Various Claim Count and Average

question 155

True/False

Average severities projection method uses various claim count and average cost per claim date on either a paid or insured basis.

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Definitions:

Product Demand

The desire and willingness of consumers to purchase a specific quantity of a good or service at a given price.

Price Elasticity

An estimation of the change in demanded quantity of a product in response to its price movements, signifying how prone consumers are to price changes.

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased in comparison to its previous value, expressed as a percentage.