Which of the following is an example of statistical discrimination?
A)Charging young drivers a higher premium than older drivers.
B)Charging people with homes near a lake higher premiums for flood insurance than those with homes built on a hill.
C)Assuming that an Italian restaurant will have better food than a Chinese restaurant in the Little Italy neighborhood of New York City.
D)All of these are examples of statistical discrimination.

Question

Quizplus · Accepted Answer

Statistical discrimination involves making decisions or assumptions based on statistical data about groups rather than individuals. All the provided options (A, B, and C) are examples of making decisions or assumptions based on group characteristics or statistical trends, such as age, location of property, or cultural assumptions tied to a specific neighborhood's culinary reputation.

Which of the Following Is an Example of Statistical Discrimination