Question

In: Statistics and Probability

An insurance company’s database includes a variable, DAMAGE, that records, for each customer claim of automobile...

An insurance company’s database includes a variable, DAMAGE, that records, for each customer claim of automobile damage due to hail, the severity of the damage to the car. DAMAGE is recorded as 1 = minor damage, …, 5 = totaled. One of the following graphs is an appropriate way to display the DAMAGE variable. Which one?

a. Time-series plot

b. Boxplot

c. Pie chart

Solutions

Expert Solution

The given variable, DAMAGE is categorical. We have frequency distribution of this categorical variable. Therefore, the appropriate way to display the variable is

c. Pie chart

Note: A bar graph can also be used for representing categorical data, but that option is not given here. Among the give options, Pie chart is the most appropriate one.

orchestra answered 2 years ago
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