Insurance companies make predictions such as how recent health trends will affect the number of heart attacks that men in the United States over the age of 45 will suffer.

Question

Quizplus · Accepted Answer

The law of large numbers states that if a large number of people or organizations are exposed to the same risk, a predictable number of losses will occur during a given period of time. In this case health trends are the source of risk and medical care or death from heart attacks is the loss.

Insurance Companies Make Predictions Such as How Recent Health Trends