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An Insurance Company Evaluates Many Numerical Variables About a Person

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Short Answer

An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance.A person's age is an example of a _________ numerical variable.


Definitions:

Market Price

the current price at which a good or service can be bought or sold, determined by supply and demand forces in the market.

Average Total Cost

The sum of fixed and variable production costs divided by the total amount of produced goods.

Long-run

A time period in which all factors of production, including capital, are variable, allowing full industry adjustment.

Price Discrimination

A pricing strategy where a seller charges different prices to different customers for the same product or service, based on factors other than the cost of production.

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