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35 You observe the following as the number of insurance policies are increased by 100 times; the expected losses increase by a factor of 100
35 You observe the following as the number of insurance policies are increased by 100 times; the expected losses increase by a factor of 100 and the variation from expected losses increase by a factor of 10. Given these observations you can conclude that objective risk declines by a factor of 10 as pool size increases by a factor of 100. variation from Number of Policies expected Loss expected loss Pool A 100.00 $10.00 $1.00 Pool B Pool 10,000.00 $1,000.00 $10.00 1,000,000.00 $100,000.00 $100.00 True False QUESTION 36 Inland marine insurance provides coverage for goods being shipped on ocean-going vessels. premature death of members of the armed forces. liability exposures of nonprofit organizations. goods being shipped on land
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