Match the descriptions with their terms:
-The _________________ states that the greater the number of exposure units insured, the greater the accuracy in the prediction of future losses by the insurer.
A) Adjusted return on capital
B) contractual liability
C) expected value
D) financial statement analysis
E) flowchart
F) law of large numbers
G) loss exposure checklist
H) maximum possible loss
I) mean
J) median
K) mode
L) risk management information system
M) standard deviation
N) Value at risk

Question

Quizplus · Accepted Answer

The Law of Large Numbers is a principle that states as the number of exposure units increases, the prediction of future losses becomes more accurate because the actual loss experience will more closely approximate the expected loss experience.

Match the Descriptions with Their Terms