An insurance company evaluates many variables about a person before deciding on an appropriate rate for automobile insurance.A representative from a local insurance agency selected a random sample of 100 insured drivers and recorded, X, the number of claims each made in the last 3 years.A Pareto chart can be used to present this information.

Question

Quizplus · Accepted Answer

A Pareto chart is used to display categorical data in descending order of frequency, not numerical data like the number of claims. A histogram or bar chart would be more appropriate for this type of data.

An Insurance Company Evaluates Many Variables About a Person Before