A professional who compiles statistics to calculate insurance risks is an ______.

A professional who compiles statistics to calculate insurance risks is an ______.

• A. Dyspeptic
• B. Actuary
• C. Fealty
• D. Ruminate

Answer: (B)

The concept here is naming the profession that uses statistics to assess insurance risk. An actuary specializes in actuarial science, applying mathematics and statistics to evaluate risk and determine prices, reserves, and financial stability for insurance and pension programs. They build models that analyze factors like mortality rates, claim frequencies, and future cash flows to estimate probabilities and financial outcomes. For example, when pricing a life insurance policy, the actuary estimates life expectancy and the chance of a claim to set premiums that cover expected costs. The others are unrelated: dyspeptic means stomach discomfort, fealty is loyalty, and ruminate means to think deeply or to chew cud.

The concept here is naming the profession that uses statistics to assess insurance risk. An actuary specializes in actuarial science, applying mathematics and statistics to evaluate risk and determine prices, reserves, and financial stability for insurance and pension programs. They build models that analyze factors like mortality rates, claim frequencies, and future cash flows to estimate probabilities and financial outcomes. For example, when pricing a life insurance policy, the actuary estimates life expectancy and the chance of a claim to set premiums that cover expected costs. The others are unrelated: dyspeptic means stomach discomfort, fealty is loyalty, and ruminate means to think deeply or to chew cud.