Accidents and statistics
Use of efficiency indicators is vital for the success of any incentive system. The following two questions are dealing with the misuse of such indicators.
Some car insurance companies charge a lower price when the insured is a woman. Why? Can we assume that women drive more carefully than men do? (Actually, the number of accidents provoked by women is higher, but the average damage value is lower.) How can we measure the carelessness of a driver? and the “quality” of a driver? How are you going to use in your answer the “all the rest equal” condition?
In 1987 and 1988, mass media were constantly using statistical figures indicating an increase in the number of victims of traffic accidents. Considering this increase, what can be inferred about the carelessness of the Spanish drivers? Has this problem anything to do with the economic growth in the country during the period? And with a number of unsuccessful negotiations in OPEC?
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