Which of the following is a form of statistical discrimination?
A)Young people are charged higher automobile insurance rates due to the higher probability of an accident.
B)Restaurants prefer to hire women than men as servers.
C)Women prefer to see a female doctor than a male doctor.
D)Women are more likely than men to pay too much money for a new automobile because salespeople bargain more with men than with women.
E)Female physicians earn 20 percent less than male physicians,on average.

Question

Quizplus · Accepted Answer

Charging higher automobile insurance rates to young people is a form of statistical discrimination as it is based on the statistical likelihood of higher accidents for that age group rather than individual risk assessment.

Which of the Following Is a Form of Statistical Discrimination