ABC Insurance Company plans to sell homeowners insurance in five Weste
ABC Insurance Company plans to sell homeowners insurance in five Western states. ABC expects that 8 homeowners out of every 100, on average, will report claims each year.
The variation between the rate of loss that ABC expects to occur and the rate of loss that actually occurs is called
A) objective probability.
B) subjective probability.
C) objective risk.
D) subjective risk.
ANSWER
Answer: C
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