Instruction 2 $$\begin{array} { | l | l | } \hline X & f \\\hline 1 & 14 \\\hline 2 & 18 \\\hline 3 & 12 \\\hline 4 & 5 \\\hline 5 & 1 \\\hline\end{array}$$

question 32

Multiple Choice

Instruction 2.1
An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance. A representative from a local insurance agency selected a random sample of insured drivers and recorded, X, the number of claims each made in the last three years, with the following results.
$$\begin{array} { | l | l | } \hline X & f \\\hline 1 & 14 \\\hline 2 & 18 \\\hline 3 & 12 \\\hline 4 & 5 \\\hline 5 & 1 \\\hline\end{array}$$
-Referring to Instruction 2.1,how many drivers are represented in the sample?

• A) 18
• B) 50
• C) 5
• D) 15

---

Definitions:

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the level of production or sales volume, such as raw materials or direct labor costs.

Profit

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activities.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.