An auto insurance company offers separate coverage for personal injury and damage to property. The amount paid in these

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An Auto Insurance Company Offers Separate Coverage For Personal Injury And Damage To Property The Amount Paid In These 1 (104.09 KiB) Viewed 63 times

An auto insurance company offers separate coverage for personal injury and damage to property. The amount paid in these two categories is positively correlated. What is the impact of this dependence on the total amount paid for accident claims? Choose the correct answer below. A. The positive dependence produces more variation in the total amounts paid for accidents, and the expected total paid goes up with the increased variation. B. The positive dependence produces less variation in the total amounts paid for accidents. However, it does not affect the expected total paid. C. The positive dependence produces more variation in the total amounts paid for accidents. However, it does not affect the expected total paid. D. The positive dependence produces no change in the variation of the total amounts paid for accidents. However, the expected total paid will increase as a result of the positive dependence.