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:

Market-Share Liability

A legal theory holding manufacturers proportionately liable for damages based on their market share of a harmful product.

Prescription Drugs

Medications that are legally dispensed only with a medical prescription due to their potential side effects or risk of misuse.

Product Caused Injury

Refers to harm that results from the use of a manufactured item, often leading to legal action based on claims of negligence or defects.

Strict Product Liability

A legal doctrine that holds sellers, distributors, or manufacturers liable for distributing a defective product to a consumer.