Which of the Following Is a False Statement

question 45

Multiple Choice

Which of the following is a false statement?

• A) Risk averse people will pay an insurance premium that is greater than the mathematically fair chance of loss in order to relieve themselves of uncertainty.
• B) A risk seeker is willing to assume risk.
• C) The mathematically fair price for insurance is the objective risk for the insurer multiplied by the maximum possible loss.
• D) Insurance is never a mathematically fair trade because the insurer adds several operating and other costs to loss costs when it calculates the premium.

Understand various financial instruments and strategies, including smart cards, dividend capture, lockboxes, and the consideration of corporate bonds for investing excess idle cash.

Understand the historical development and foundational theories of intelligence testing.

Differentiate between various approaches and assumptions in the measurement of intelligence.

Comprehend the concept and calculation of intelligence quotient (IQ) and its implications.

---

Definitions:

Somatic Nervous System

A part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles.

Endocrine System

A network of glands in the body that produce hormones, which regulate metabolism, growth and development, tissue function, sexual function, reproduction, sleep, and mood, among other things.

Bug Crawling

The sensation or perception of insects moving over one's skin, often without any physical cause.

Somatic Nervous System

Part of the peripheral nervous system that handles voluntary control of body movements via skeletal muscles.