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:

Combinations of Capital

Various ways in which a firm can organize its financial resources and assets to support its production process and operations.

Total Cost

The sum of fixed and variable costs incurred in the production of goods or services.

Isocost Line

A graphical representation in economics that shows all possible combinations of inputs that cost the same total amount.

Slope

A measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.