According to the law of large numbers, what should happen as an insurance company increases the number of loss exposures that it insures?
A) Fewer losses should be expected to occur.
B) The amount of premiums needed to cover losses should decrease.
C) The volatility of the insurance company's underwriting results should increase.
D) The difference between actual and expected results should decrease.
Answer: D
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A. differ between alternatives. B. were incurred in the past. C. will not be incurred in the future, regardless of the alternative chosen. D. None of the above.
The determination of capacity to meet demand is done through ______.
A. finding the right market B. establishing the right price C. designing the product appropriately D. capacity planning
Within the comprehensive self-framework, all of the parts of self-leadership have direct relationships with the “Mind and Body”, except for what?
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A) They can determine the most efficient way to operate. B) They are often achievable by operating personnel. C) They provide very rigorous guidelines. D) All of the other statements are false. E) More than two of the other statements are true.