Severity vs. Frequency looks at the loss rate that is more predictable on low severity, high frequency lines of insurance than it is on high severity, low frequency lines. Which of the examples below can best be used to determine the loss rate for a high severity, low frequency line of insurance. a. The COVID 19 pandemic which significantly affected nearly all segments of countries globally. b. A significant tropical storm which does extensive damage to farmlands. c. A catastrophic hurricane that is rated as a category 2 or above. d. A severe forest fire which frequently occurs during the summer months.

Severity vs. Frequency looks at the loss rate that is more predictable on low severity, high frequency lines of insurance than it is on high severity, low frequency lines. Which of the examples below can best be used to determine the loss rate for a high severity, low frequency line of insurance. a. The COVID 19 pandemic which significantly affected nearly all segments of countries globally. b. A significant tropical storm which does extensive damage to farmlands. c. A catastrophic hurricane that is rated as a category 2 or above. d. A severe forest fire which frequently occurs during the summer months.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter6: Statistical Inference

Section: Chapter Questions

Problem 42P

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