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nikklg [1K]
3 years ago
12

What is the mathematical concept of probability that helps insurers estimate the statistical likelihood of mortality or morbidit

y losses at any given age?
A. law of large numbers

B. actuarial principle

C. law of probability

D. underwriting principle
Social Studies
1 answer:
torisob [31]3 years ago
3 0

Answer:

A. law of large numbers

Explanation:

Law of large numbers is the mathematical concept of probability that helps insurers estimate the statistical likelihood of mortality or morbidity losses at any given age.

This idea states that as the number of exposure or an attainment of a larger value increases, it is usually easier and more accurate to predict the likelihood of mortality or morbidity losses. The law of large numbers is the mathematical principle of probability that insurance is based on.

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