1. If the individual standard deviation of a group of geographically dispersed and like auto drivers is $2,500, what would happen to the individual standard deviation if 16 of the auto drivers formed a risk sharing (pool)? The individual standard deviation would be?
A. Increase to $10,000
B. Decrease to $625
C. Increase to $40,000
D. Decrease to $156
2. What happens to the pooling effect if exposures are no longer independent? The pooling effect is,
a. the same b. greater c. less d. correlated