1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
madam [21]
2 years ago
8

JKL Insurance Company estimates that 14 out of every 100 homeowners it insures will file a claim each year. Last year, JKL insur

ed 200 homeowners. According to the law of large numbers, what should happen if JKL insures 2,000 homeowners this year?a. The total number of claims filled by JKL policy owners should decrease.b. The total dollar value of claims will decrease.c. The average size of loss will decline in value.d. The actual results will more closely approach the expected results.
Business
1 answer:
Snowcat [4.5K]2 years ago
5 0

Answer:

The answer is: D) The actual results will more closely approach the expected results.

Explanation:

The Law of Large Numbers is a principle or probability that states that as the number of events (home insurance policies) increases, the actual ratio of outcomes tend to converge with the expected ratio of outcomes (14% of homeowners filing a claim per year).

So if JKL Insurance Company issues 2,000 home policies this year, they should expect that 280 homeowners will file a claim for this year.

You might be interested in
After suffering a debilitating injury, Ahmad (47) retired on disability after teaching high-school math for several years. He ha
VMariaS [17]

Answer:

Ahmad must report his disability payments as income.

Explanation:

Disability payments are taxable only if the insurance premium was paid by Ahmad's employer (which happened in this case). If Ahmad had paid the premium himself, then the disability premiums would not be considered income. If the premiums had been paid by both Ahmad and his employer, then only the proportion paid by Ahmad's employer would have been taxed.

4 0
2 years ago
Financial Institutions are described as having an asset transformation function. Explain this function and describe how a bank t
anyanavicka [17]

Answer:

In simple words, Asset transformation can be understood as the process of turning small denominational, instantly available, and generally riskless deposit accounts into lenders moderately risky, high denomination assets that are returned according to a specified schedule–from obligations (deposits) with distinct traits.

4 0
2 years ago
Using the information below, calculate gross profit for the period:    Beginning Raw Materials Inventory$25,000 Ending Raw Mater
nevsk [136]

Answer:

Gross Profit                  714,000

Explanation:

Gross Proft: is the diference between the sales revenue and the cost of the goods sold.

Sales revenue          1,254,000

Cost of Goods Sold    (540,000)

Gross Profit                  714,000

note: All the other account and values are irrelevant to determinate the gross profit.

<u>Other way to calculate gross profit:</u>

(sale price per unit - cost per unit) x unit sold

5 0
3 years ago
3. According to their comparative advantage, Alphaland specializes in axes and Betaville specializes in batons. Alphaland will t
Nady [450]

Answer: Option (C) is correct.

Explanation:

A country has a comparative advantage in producing a commodity if the opportunity cost of producing that good is lesser in that country as compared to the other country.

From the information given in the question, it is clear that Alphaland has a comparative advantage in axes and Betaville has a comparative advantage in batons.

Hence, Alphaland will trade axes for batons only if the price of batons is lower than the cost of producing it in Alphaland. So that there is a possibility mutually beneficial trade.

7 0
3 years ago
​Moe's Pizza Shop sells a large pizza for​ $12.00. Unit variable expenses total​ $8.00. The breakeven sales in units is​ 7,000 a
Nookie1986 [14]

Answer:

Margin of safety= $12,000

Explanation:

Giving the following information:

Moe's Pizza Shop sells a large pizza for​ $12.00. Unit variable expenses total​ $8.00. The breakeven sales in units are​ 7,000 and budgeted sales in units are​ 8,000

To calculate the margin of safety in dollars, we need to use the following formula:

Margin of safety= (current sales level - break-even point)

Margin of safety= (8,000*12) - (7,000*12)= $12,000

3 0
2 years ago
Other questions:
  • Many personal care companies combine toothpaste with a toothbrush at a reduced price. this is an example of​ __________ pricing.
    14·1 answer
  • What is 8,000 multiplied by 15%
    10·2 answers
  • What is trade in economics​
    6·2 answers
  • Select all that apply What is the difference between an adjusted trial balance and an unadjusted trial balance? (Check all that
    10·1 answer
  • Keynes believed that wages and prices were sticky. Therefore, a rightward shift of the aggregate demand curve would cause a(n)
    7·1 answer
  • Imagine that you are working at a clothing or grocery store, and answer the questions below about inventory and merchandising fo
    15·1 answer
  • Which one of the following measures the average amount of time that it takes to repair a system, application, or component?
    11·1 answer
  • You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends.
    7·1 answer
  • A check returned by a bank because the issuer's cash account balance could not cover the check is called a(n):
    7·1 answer
  • Lindsay is in 11th grade and wants to be a physical trainer and work with athletes for her career. She wants to help them learn
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!