An Insurance Company Estimates That It Should Make an Annual

question 44

Multiple Choice

An insurance company estimates that it should make an annual profit of $150 on each homeowner's policy written,with a standard deviation of $6000.If it writes three of these policies,the mean annual profit for the company is found to be 3 × 150 = 450.The standard deviation of the company's annual profit is found to be
≈ $10,392.
The calculation of the standard deviation requires the assumption that the policies are independent of one another.Which of the following examples describes a situation in which that assumption may be violated?
A: The houses are close to each other and may all be affected by the same catastrophe such as earthquake,flooding,or fire.
B: The owners all bought their homes in the same year and may all be affected by a downturn in the market
C: The owners of the three homes are related
D: All three houses were bought for the same price

• A)B only
• B)A,B,C,and D
• C)A and C
• D)A only
• E)B and D

Recognize the importance of altruistic behavior and the conditions that promote it.

Explain the role of social influence in shaping perceptions, attitudes, and actions.

Understand the psychological and neural responses to conforming or not conforming to group norms.

Understand the distinction and interaction between cognitive and mechanical processes in conditioning.

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Definitions:

Policy Advocate

A policy advocate is a person who actively supports and promotes specific policies or legislative changes, seeking to influence public opinion or decision-making processes in favor of those policies.

Using Data

The practice of employing facts and statistics collected together for reference or analysis to inform decisions or understand patterns.

Direct-Service Staff

Employees or workers who provide front-line services or support directly to clients or beneficiaries in various sectors, such as healthcare, social services, or education.

Agenda Building

The process by which issues, problems, and solutions become recognized and accepted as part of the political agenda for action by policymakers.