The Idea of Insurance

question 31

Multiple Choice

The idea of insurance

• A)would not appeal to a risk-averse person.
• B)is,other things the same,to reduce the probability of a fire,accident,or death.
• C)is to share risk.
• D)is to provide a sure thing,not a gamble.

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Definitions:

Phenomenon

An observable event or a remarkable occurrence that can be scientifically described or investigated.

Null Hypothesis

An empirically testable hypothesis that two phenomena are entirely unrelated except perhaps by random chance.

Confirmatory Factor Analysis

A statistical technique used to verify the factor structure of a set of observed variables.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact through controlled observation.