Eleanor and Her Father Have Identical Driving Records for the Last

question 38

Multiple Choice

Eleanor and her father have identical driving records for the last ten years and neither one has had an accident or insurance claim. Despite that record She pays more for car insurance than he does. What might be the reason for this?

• A)Statistical discrimination
• B)The moral hazard problem
• C)Adverse selection
• D)The law of large numbers

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Definitions:

High Blood Pressure

A condition where the force of blood against artery walls is too high, often leading to health problems such as heart disease.

Rh Incompatibility

A condition where a pregnant woman's blood type is Rh-negative and her unborn baby’s blood type is Rh-positive, potentially leading to health problems in the baby.

Rh-Positive

Refers to the presence of the Rh antigen on the surface of red blood cells, a significant factor in blood transfusion compatibility.

Rh-Negative

Refers to the absence of the Rh factor, a protein on the surface of red blood cells, significant in blood transfusion and pregnancy compatibility situations.