An Insurance Company Can Use the Law of Large Numbers

question 90

True/False

An insurance company can use the law of large numbers to predict the number of people in your community that will have a car accident in a given month.

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Definitions:

Depreciation

The reduction in the value of an asset over time, particularly for tax purposes.

Equipment

Tangible property used in operations, such as machinery or computer hardware, which can often be depreciated for tax purposes.

Capital Asset

A long-term asset such as equipment, real estate, or securities, which is not easily sold in the regular course of a business's operations for cash.

Taxpayer's Home

The primary place of abode of a taxpayer that determines tax liabilities and benefits.