The Purpose of Insurance Is to Help Protect You and Your

question 105

True/False

The purpose of insurance is to help protect you and your family against financial hardship due to hazard, accident, death, and similar risks.

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Definitions:

Discrete Probability

Discrete probability involves probability distributions that deal with discrete random variables, which are variables that have specific, countable outcomes, such as rolling a die or flipping a coin.

Binomial Experiment

A statistical experiment that meets the criteria of having a fixed number of trials, each with two possible outcomes, independent trials, and a constant probability of success.

Independent Trials

Refers to experiments or processes in which the outcome of any given trial does not affect the outcomes of future or past trials.

Probability of Success

The likelihood of achieving a desired outcome or event.