Insurance business is based on ______________. A. Parkinson law B. Newton law C. The theory of probability and law of large numbers D. Boyle law

The correct answer is: C. The theory of probability and law of large numbers.

The theory of probability is the branch of mathematics that deals with the analysis of random phenomena. The law of large numbers is a theorem in probability theory that states that the average of the results of a large number

of independent experiments will be close to the expected value, even if the individual experiments are subject to random variation.

Insurance companies use the theory of probability and the law of large numbers to calculate the probability of an event occurring and the expected cost of that event. They then use this information to set premiums for their customers.

Parkinson’s law is a theory that states that work expands so as to fill the time

available for its completion. Newton’s laws of motion are three physical laws that, together, laid the foundation for classical mechanics. Boyle’s law is a gas law that states that for a fixed amount of an ideal gas kept at a fixed temperature, pressure and volume are inversely proportional.

I hope this helps!