If an insurance company insured 100,000 cars across the state against theft, which of the following would not be true?
A) The insurance company would be fairly certain of the number of cars that will be stolen.
B) The insurance company would be engaging in a strategy known as pooling of risks.
C) The insurance company would know with a fair amount of certainty the expected payoff on the insurance policies.
D) The insurance company must assume that very few cars will be stolen.
Correct Answer:
Verified
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