If the Average Loss Severity is $925 and the Average Loss Frequency is 0.17, what is the Average Loss?
A) $183.78
B) $157.25
C) $5,441.18
D) There is not enough information to calculate the Average Loss.

Question

Quizplus · Accepted Answer

The formula for the calculation of average loss is: 
Average Loss = Average Loss Severity x Average Loss Frequency

Putting the values given in the question, we get:

Average Loss = $925 x 0.17 = $157.25

Therefore, the answer is B.

If the Average Loss Severity Is $925 and the Average