Mathematics, 16.02.2021 05:20 kev485

To prepare premium rates (the amounts customers pay) for an insurance plan, an insurance company conducts an extensive risk study to determine the probability that a member of a certain group may require a pay-off. Based on these probabilities, the expected amount of payoff is charged to the consumer as part of the premium. Explain why car insurance companies charge a higher premium for teenage drivers with a clean driving record than for adult drivers with a clean driving record.

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To prepare premium rates (the amounts customers pay) for an insurance plan, an insurance company con...

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