A Car Insurance Company Is Willing to Offer Accident-Free Drivers

question 171

Multiple Choice

A car insurance company is willing to offer accident-free drivers a discount.This is an example of

• A) a positive incentive.
• B) a negative incentive.
• C) an opportunity cost.
• D) a comparative advantage.
• E) scarcity.

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Definitions:

Predictive Validity

Predictive validity refers to the extent to which a score on a scale or test predicts future behavior or outcomes.

IQ Test

A uniform test intended to evaluate a person's intelligence and cognitive capacities.

Predictive Validity

How well a rating on an examination or metric anticipates subsequent success in a similar endeavor.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.