Using Just a Base Year and One Additional Year Is

question 30

True/False

Using just a base year and one additional year is not sufficient to do a long-term trend analysis of accounts.

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Definitions:

Comprehensive Insurance

A type of insurance that covers the repair or replacement of parts of an insured car damaged by vandalism, fire, flood, wind, earthquakes, missiles, falling objects, riots, tree sprays, and other disasters; it also covers if the car is stolen.

Collision Insurance

A type of insurance that pays for the repair or replacement of an insured car if it is damaged in a collision with another vehicle or object, or if it overturns, no matter who is at fault. This type of insurance is usually required if there is a loan on the car.

Deductible

Part of the repair or damages that a driver has to pay before the insurance company pays.

Drag Factor

A coefficient used in physics and engineering to quantify the resistance of an object moving through a fluid or air.