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SSSSS [86.1K]
3 years ago
8

Teddy is considering buying flood insurance. The cost of flood insurance is $400 per year. Teddy predicts that there is a 20% ch

ance that his house will flood and estimates that a flood will cause $1,000 in damages. If he gets insurance and there's no flood damage, he will lose his $400. However, if he gets insurance and there is flood damage, the insurance company will pay $1,000 for the damages. Since Teddy only paid $400 for the insurance, he will essentially save himself $600. What is the expected value of savings/losses for Teddy buying insurance?
Business
1 answer:
jeka943 years ago
5 0

Answer:

Expected payoff from insurance:

$1000*0.20 = $200

0*0.80=0

Expected payoff is $200

He pais $400 for insurance.

He gains only if there is a flood, but he has an expected loss of $200

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Financial statements are influenced by five important forces that determine a company's competitive intensity: (A) industry comp
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<u>Full question:</u>

Financial statements are influenced by five important forces that determine a company's competitive intensity: (A) industry competition, (B) buyer power, (C) supplier power, (D) product substitutes, and (E) threat of entry.

Select one:

True

False

<u>Answer:</u>

Financial statements are influenced by five important forces that determine a company's competitive intensity - True

<u>Explanation:</u>

Michael Porter’s five forces of rival(s) can be applied to monitor and investigate the competitive edifice of an industry by attending 5 forces of opposition that impact and form profit potential.   Supplier power. An evaluation of how simple it is for suppliers to force up prices.  Buyer power. An estimation of how accessible it is for buyers to push prices dropping.

Competitive rivalry. The principal driver is the quantity and ability of competitors in the market.  The threat of substitution. Where close alternate goods endure in a market, it improves the likelihood of customers shifting to alternatives.  The threat of new entry. Favorable markets bring new entrants, which decays profitability.

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3 years ago
Which of the following is an analytical tool used in six-sigma quality improvement programs? A. LeadershipB. Pareto ChartsC. Man
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Answer: Pareto charts

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    Six sigma is a tool used by management to identify and remove the defects from a process thus making it more effective.

Hence, from the above we can conclude that right answer to this problem is Pareto charts.

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3 years ago
Your grandfather invested $1,000 in a stock 36 years ago. currently the value of his account is $318,000. what is his geometric
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3 years ago
Critics of globalization claim that, as globalization increases, countries' sovereignty (the freedom of national officials to ac
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Answer:

True

Explanation:

Critics of globalization claim that, as globalization increases, countries' sovereignty (the freedom of national officials to act locally and without externally imposed restrictions) is diminished because as some of them say 'it is an economic tsunami', in the sense that - people of other countries 'invade' a country in the name of globalization and the locals of that country are expected to curtail their local customs and individual behavior to accommodate the foreigners. Also foreigners take some of the jobs that are available in the country to the 'detriment' of the locals

Secondly, 'the resulting growth consistently benefits the environment', because the gains of migration are not shared commonly among the locals, rather they could be invested in environmental projects to boost Tourism and attract more foreigners.

Thirdly, the statement that 'Some people lose both relatively and absolutely, and greater insecurity increases a personal stress.'is true because in cities like London and most other European capitals we have seen an increase in crime alongside the rise in immigration and globalization

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3 years ago
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