Insurance business is based on ______________.
A. Parkinson law
B. Newton law
C. The theory of probability and law of large numbers
D. Boyle law
Answer: Option C
Solution(By Examveda Team)
Insurance business is based on the theory of probability and law of large numbers. As the number of exposure units, or policyholders, increases, the probability is higher that the actual loss per exposure unit will equal the expected loss per exposure unit.This Question Belongs to Commerce >> Business And Commerce
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