JKL Insurance Company estimates that 14 out of every 100 homeowners it insures will file a claim each year. Last year, JKL insured 200 homeowners. According to the law of large numbers, what should happen if JKL insures 2,000 homeowners this year? a. The total number of claims filled by JKL policy owners should decrease. b. The total dollar value of claims will decrease. c. The average size of loss will decline in value. d. The actual results will more closely approach the expected results.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “JKL Insurance Company estimates that 14 out of every 100 homeowners it insures will file a claim each year. Last year, JKL insured 200 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which of the following defines a compound tariff? A fixed amount of money per unit combined with a fixed percentage of the value of the imported product A fixed percentage of the value of the imported product as it enters the country A fixed amount
Answers (1)
You work for a company that always pushes the envelope with respect to reporting revenues and expenses. You often disagree with the company because its approach to reporting these amounts cannot be justified from a GAAP perspective.
Answers (1)
A firm's net income is the most appropriate measure to determine whether the management is maximizing the firm's stock price. True False
Answers (1)
Bennett is a software engineer who starts his own website development firm. His friend, Callie, is the owner of a store that sells office supplies.
Answers (1)
Comparing a static planning budget to actual costs is not a good way to assess whether variable costs are under control. T/F
Answers (1)
New Questions in Business
the context of bringing the code of ethics of a company to life, which of the following statements is true when experts try to advocate a forceful, integrated approach to ethics?
Answers (1)
Privatisation leads to ... A) Lower productivity and lower profit B) Higher productivity and higher profit C) Higher productivity and lower profit D) lower producitivity and lower profit
Answers (1)
As of December 31, 2019, Armani Company's financial records show the following items and amounts. Cash $ 10,000 Accounts receivable 9,000 Supplies 6,000 Equipment 5,000 Accounts payable 11,000 A. Armani, Capital, Dec. 31, 2018 16,000 A.
Answers (1)
Which of the following is true of development? It does not consider changes in technology, work design, and new customers in its modules. It focuses primarily on the current requirements of a job.
Answers (1)
Javier is the business manager at his college. In his role, Javier makes a lot of business decisions. Javier has installed a vending machine in a dorm for soft drinks. The machine rents for $200 a month and the electrical use is minimal.
Answers (1)