Insurance companies require male drivers under age 25 to pay higher insurance rates than female drivers under age 25. Craig Raymond, however, is a safer driver than the average female driver under age 25. Craig's higher insurance rate reflects

A) monopoly power.
B) statistical discrimination.
C) the insurance firm's taste for discrimination.
D) human-capital discrimination.

Statistical Discrimination

The use of statistical or probabilistic data about demographic groups by employers, lenders, etc., to make assumptions about individuals, potentially leading to discriminatory practices.

Insurance Rates

The cost or premium for insurance coverage, determined by risk assessment and statistical analysis.

Male Drivers

Refers to individuals who are identified as male and operate vehicles, often subject to statistical analysis in studies of driving behavior.