List some of the reasons why insurance companies engage in the reinsurance transaction
What will be an ideal response?
Reasons for insurance companies engaging in the reinsurance transaction include: 1 ) keeps exposures similar is size, 2 ) enhances the operation of the law of large numbers, 3 ) purchase services from the reinsurance companies, 4 ) makes the insurance company appear competitive for large exposures, 5 ) enhances the ability of entry into and exit out of the insurance business.
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The linear combinations of independent variables developed by discriminant analysis that will best discriminate between the categories of the dependent variable are ________
A) discriminant functions B) discriminant scores C) characteristic profiles D) classification matrix
"Big spenders" focus their budgeting decisions on
A) reducing expenses. B) increasing income. C) spending most of their income. D) saving most of their income.