An Example of Statistical Discrimination Would Be

question 70

Multiple Choice

An example of statistical discrimination would be:

• A) charging young drivers a higher premium than older drivers.
• B) charging homes near a lake higher premiums for flood insurance than those on a hill.
• C) assuming the food will be better at an Italian restaurant than a Chinese one in the Little Italy neighborhood of NYC.
• D) All of these are examples of statistical discrimination.

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Definitions:

Ears

Organs of hearing and balance in humans and other vertebrates, responsible for detecting sound waves and converting them into signals that can be processed by the brain.

Feet

The lower extremity of the leg below the ankle, on which a person stands or walks.

Leptin

A hormone that affects appetite and is believed to affect the onset of puberty. Leptin levels increase during childhood and peak at around age 12.

Estrogen

A group of steroid hormones that play a key role in the development and regulation of the female reproductive system and secondary sex characteristics.