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Risk managers rely on statistics and trend analysis in making their risk decisions. Chapter 2 provides a refresher course in statistics and mathematical concepts. Risk managers must provide executive management is hard number reasons for the directions they must take. Consider an insurance company that wants to underwrite automobile insurance; the actuaries need historical data involving claims and motor vehicle violations to properly rate their product. If you were the risk manager charged with developing a new line of auto insurance, which market would you pursue and which ones would you not pursue? Provide examples with factual data (and cite your sources) in your answer

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