Question

out of the following answer options, which statement is true regarding law of large number :
amongst a similar type of catastrophic losses
the larger the number the more accurate the predicition
statistics for loss
determines the cost of insurance
fiduciary :
a person who pays premiums
a person who grants financial trust
a person in position of financial trust
none of the above
activities such as scuba diving which increases the chance of a loss occurring is called a
peril
pure risk
hazard
speculative risk

Explanation:

1. For the Law of Large Numbers: This principle states that as the number of trials or observations increases, the average of the results will approach the expected value, making predictions more accurate.
2. For Fiduciary: A fiduciary is a person who holds a position of financial trust, obligated to act in another party's best financial interest.
3. For the risk-related term: A hazard is a condition or activity that increases the likelihood or severity of a loss, such as scuba diving increasing injury risk.

Answer:

1. the larger the number the more accurate the prediction
2. A person in position of financial trust
3. hazard