Which of the Following Is NOT an Example of Adverse

question 18

Multiple Choice

Which of the following is NOT an example of adverse selection?

• A)A family with a home ten feet from a large river buys flood insurance.
• B)A company uses the proceeds of a new stock sale to build an unnecessarily luxurious new headquarters.
• C)A terminal cancer patient buys life insurance.
• D)A company in serious financial trouble offers to pay you 30% on a loan.

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Definitions:

Quasi-experimental Study

A research design that lacks the element of random assignment to treatment or control groups, used to infer causality between variables.

DSMs

Diagnostic manuals used by clinicians to classify and diagnose mental disorders, providing standardized criteria and definitions.

Case Study

A detailed examination of a single subject or an instance, often used in clinical, educational, and business research to explore complex issues in real-life contexts.

Abnormal Behaviour

Actions or behaviors that deviate significantly from what is considered typical or usual for a given culture or society.