Which of the Following Statements About Schedule Rating Is (Are)true

question 23

Multiple Choice

Which of the following statements about schedule rating is (are) true?
I.It involves the determination of a basis rate for each exposure,which is then modified by credits or debits.
II.It is based on the assumption that certain physical characteristics of the insured's operations will influence the insured's future loss experience.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Correlated

When two or more variables are related in some manner, indicating that a change in one variable is associated with a change in another.

Predictive Validity

Predictive validity refers to the extent to which a score on a scale or test predicts future behavior or outcomes.

IQ Test

A uniform test intended to evaluate a person's intelligence and cognitive capacities.

Predictive Validity

How well a rating on an examination or metric anticipates subsequent success in a similar endeavor.