Which of the following exemplifies statistical discrimination in health insurance?Insurance providers tend to charge lower premiums to young adults, because young adults cost less on average to insure.People with higher-than-average health costs are more likely to seek out health insurance.Doctors tend to prescribe more tests and treatments to patients who are insured over patients who are uninsured.
A)III only
B)II and III only
C)I only
D)I, II, and III

Question

Quizplus · Accepted Answer

Statistical discrimination involves making decisions based on aggregate statistical data rather than individual merit. In this context, charging lower premiums to young adults because they cost less on average to insure is an example of statistical discrimination, as it relies on general data about age groups rather than individual health status or history.

Which of the Following Exemplifies Statistical Discrimination in Health Insurance?Insurance