An Auto Insurance Company Evaluates Many Numerical Variables About a Person

question 58

Short Answer

An auto insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance.The number of claims a person has made in the last 3 years is an example of a(n)____________________ random variable.

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Definitions:

Empirical Approach

A method of inquiry that relies on observation, experimentation, and evidence rather than theory alone.

Test Validation

The process of ensuring that a test accurately measures what it is intended to measure.

Content Validity

Refers to the extent to which a test measures all aspects of a given construct or domain of interest accurately.

Construct Validity

Construct validity refers to the extent to which a test or instrument measures the theoretical construct it is intended to measure.