Are you suggesting that a distribution should always delineate two groups at a whole number? Are you aware of how distributions work? I don't understand what you're implying, but the result is the output of a model and I don't see why any other number would be any different.
No, it was more just amusing. Yes, I know there's going to be a cutoff at the 3-sigma or whatever line. It still results in some entertaining delineations in the real world.
I have no idea who you are talking to or what you're talking about. Edit: do you mean car insurance when you say service? If so, this still makes no sense. They're offering you a discount if you drive safely. You have the insurance for a plethora of reasons, only one of which is an accident caused by you. How you managed to spin an optional discount added onto already competitive rates into a bad thing is beyond me.
Yes, the investment is the people - they're only profitable if they don't do things like make claims. Hence you get a strong, and sometimes overzealous, push within the insurance company to reject claims.
I guess I don't like the bit about them having a device in your car to keep a closer eye on you (opt-in, I know). Same with some health insurance companies having people wear pedometers. How far does it keep going? When does it stop? Testing of reaction time? Monitoring daily caloric intake?
They don't charge more if you drive like an asshole based on the results of the logs collected by the device. It can only help you, so your point isn't valid. This also isn't creepy at all because you have to opt into the service. I let them collect the data and I'm fully aware of what it's doing. Also, they aren't making anyone fit into any behavior. They collected shitloads of data and determined that people who accelerate and brake rapidly are involved in more accidents and the model spit out 7.7 mph as a breakpoint. There's no voodoo involved here.
Perspective. Whatever they want to call it, a discount or not, it's still tiered pricing based on behavior.
Like the Simpsons thing: A tax increase is a refund adjustment.
The baseline pricing is the price with the safe driving, though it's called a refunded rate, and then there's an addon for anything that they don't deem to be safe. Perspective.
Yes, it's opt-in. I can't help but wonder, with the exceptional amount of influence that large companies have in government, how long that will remain true.
And yes, I do know something about how statistical analysis works. They arrived at some confidence level that they were ok with, and 7.7mph is the number that happened to come out the other end.
Also, they aren't making anyone fit into any behavior.
They can sure encourage it though.
"Use this monitoring device and your bill will go down by 10%. If you do X, you don't get that."
People can be quite pliable if you know how to do it. Waving money at someone often does wonders.