Explain why insurers ask student drivers about their grades, Microeconomics

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Explain why insurers ask student drivers about their grades

Problem

1. Consider the market for life insurance. Give an example of statistical discrimination an insurer might use to set premiums.

2. Consider the market for auto insurance. Explain why insurers ask student drivers about their grades.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Explain why insurers ask student drivers about their grades

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