3. what role does math play in the insurance industry? a. insurance companies use statistics to find how…

3. what role does math play in the insurance industry? a. insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit b. insurance companies use algebra and geometry to calculate the distance from clients major emergencies to nearest hospitals c. insurance companies use statistics to hypothesize how likely clients are to switch over to competitive companies d. insurance companies use calculus to find out how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit

3. what role does math play in the insurance industry? a. insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit b. insurance companies use algebra and geometry to calculate the distance from clients major emergencies to nearest hospitals c. insurance companies use statistics to hypothesize how likely clients are to switch over to competitive companies d. insurance companies use calculus to find out how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit

Answer

Brief Explanations:

Insurance companies use statistics to assess the probability of clients making claims. This helps in setting premiums for profit - maximization. Algebra and geometry are not used for calculating distances to hospitals in premium - setting. Statistics is not mainly used for hypothesizing client switching. Calculus is not used for this probability assessment for premium - setting.

Answer:

A. Insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit