A Property and Casualty Insurance Company Would Like to Classify

question 6

Multiple Choice

A property and casualty insurance company would like to classify its policyholders into three categories: low, medium, and high. Which measurement level does this risk variable fall into?

• A) ratio
• B) nominal
• C) ordinal
• D) interval

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Definitions:

Standardization

The process of making something conform to a standard.

Commercial Aircraft

Airplanes designed and utilized for transporting passengers and cargo, operated by airlines and leasing companies.

Checking Accounts

Bank accounts that allow for both deposits and withdrawals, typically used for day-to-day financial transactions.

Focus Group

A research method where a small, diverse group of people whose reactions are studied especially in response to new products or policies.