Which of the Following Is an Example of Adverse Selection

question 112

Multiple Choice

Which of the following is an example of adverse selection?

• A) The careful driver buys extra insurance protection when renting a car.
• B) The sickest people buy health insurance.
• C) The person with health insurance rides a motorcycle without wearing a helmet.
• D) The person with life insurance exercises daily and eats healthy foods.

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Definitions:

Frequency Distribution

The representation, often in graphical form, of the frequencies within a dataset to show how the values in the set are distributed.

Well Defined

Clearly explained or identified with precise boundaries or criteria.

Classes

Categories or groups of objects or individuals sharing common attributes, qualities, or characteristics.

Distribution

In syllogistic logic, the term refers to the way in which a term in a categorical proposition is applied to all members of the category it denotes.