Suppose an Insurance Company Successfully Screens Drivers by Offering Two

question 102

Multiple Choice

Suppose an insurance company successfully screens drivers by offering two contracts. One contract is a policy with high premiums and comprehensive coverage, and the other a policy with low premiums and $1500 excess on each claim. This means that:

• A)risky drivers and safe drivers would both select the high premium contract
• B)risky drivers would select the high premium contract and safe drivers would select the low premium contract
• C)risky drivers would select the low premium contract and safe drivers would select the high premium contract
• D)risky drivers and safe drivers would both select the low premium contract

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Definitions:

PMT

A financial function that calculates the payment for a loan based on constant payments and a constant interest rate.

Text Functions

Features or commands in software that allow manipulation and formatting of text, such as changing case or concatenating strings.

UPPER

A function typically used in programming and spreadsheet applications to convert text data into uppercase letters.

LOWER

In the context of text manipulation, a function or method used to convert all characters in a string to lowercase.