In the Market for Automobile Insurance,drivers Can Reveal That They

question 34

Essay

In the market for automobile insurance,drivers can reveal that they are low risk by buying policies with ________ deductibles and ________ premiums.
A) high; low
B) low; high
C) high; high
D) low; low
E) zero; high

• A) high; low
• B) low; high
• C) high; high
• D) low; low
• E) zero; high

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Definitions:

Interaction

In statistics and research, it refers to a situation where the effect of one independent variable on the dependent variable differs depending on the level of another independent variable.

Profile Plot

A graphical representation of the multivariate data where each observation is represented by a plot, often used to observe patterns over time or conditions.

Main Effect

In statistics, the term refers to the primary effect of an independent variable on a dependent variable in experimental design.

Material

The substance or substances from which a thing is or can be made.