A Motorcycle Insurance Company Evaluates Many Numerical Variables About a Person

question 200

Short Answer

A motorcycle insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for motorcycle insurance.The distance a person rides in a year is an example of a(n)____________________ random variable.

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Definitions:

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, including high start-up costs, regulatory requirements, and established brand loyalty.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing an excess return over and above normal profits.