The table below shows the direct premium income of non-life insurance business for Nigeria in a particular year. Use the data to answer the questions that f...

(a) Calculation of the missing percentages

Percentage premium income = \(\dfrac{\text{premium income}}{\text{total premium income}}\times100\).

Motor:

\[\frac{94,442,000}{202,320,000}\times100=46.678\ldots\%\approx \boxed{46.7\%}\]

Miscellaneous:

\[\frac{20,040,000}{202,320,000}\times100=9.904\ldots\%\approx \boxed{9.9\%}\]

Check: \(12.1+6.8+46.7+24.5+9.9=100.0\%\).

(b)(i) Percentage bar graph

The bar represents the whole premium income, that is, \(100\%\). Its sections show the percentage contribution of each class of non-life insurance.

(b)(ii) Disadvantages of a percentage bar graph

1. It shows the relative percentages only; the actual premium incomes in naira cannot be read directly from the graph.
2. Very small component parts are difficult to draw, measure and compare accurately.

(c) Alternative method

A pie chart (divided circle) can be used to represent the statistics.