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marissa [1.9K]
3 years ago
13

If there is a 1% chance that you will be in an auto accident that will cost you $100,000 in lost income, medical expenses, and l

iability, and your insurance company charges a 10% risk premium, an insurance policy giving you full coverage would likely cost
Business
1 answer:
tia_tia [17]3 years ago
3 0

Options:

a) $10,000

b) $1,000

c) $1,100

d) $11,000

Answer:

d) $11,000

Explanation:

There is 1% chance of involving in the auto accident

1% of $100, 000 = 1/100 * 100000 = $1000

The insurance company charges a 10% risk premium

10% of $100,000 = 10/100 * 100000 = $10,000

Full coverage = $10,000 + $ 1000

Cost of Full coverage = $11,000

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Answer:

e. $6.0 million

Explanation:

The computation of the total value of the firm is shown below:

The Value of the firm is

= Amount borrowed ÷ ownership percentage

= $1,500,000 ÷ 0.25

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Hence, the total value of the firm is $6,000,000

Therefore the correct option is e.

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3 years ago
What is confidential information​
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Answer:

Information that is top secret vip your eyes only

6 0
2 years ago
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The probability that Mary will win a game is 0.03, so the probability that she will not win is 0.97. If Mary wins, she will be g
valkas [14]

Answer:

Expected value of X = -11.09

Explanation:

Expected profit:

= Probability of winning × Amount she wins

= 0.03 × $180  

= 5.4

Expected loss:

= Probability of loosing × Amount she paid

= 0.97 × $17

= 16.49

Let X be amount of money Mary wins or loses.

E(X) = Expected profit - Expected loss

= 5.4 - 16.49

= -11.09

Expected value of X = -11.09

That is expected value of loss of $11.09

4 0
3 years ago
A production function is a relationship between:____.a. inputs and profit. b. inputs and quantity of output. c. inputs and reven
Dahasolnce [82]

Answer:

b. inputs and quantity of output

Explanation:

A production function is a relationship between inputs and the quantity of output. In other words, it is the entire production process that goes into creating a product. This includes the specific materials that need to be inputted into the process in order for the output to be exactly as needed in order for the product to come out as desired and the right quantity. Thus, creating a relationship between input and output

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3 years ago
Fatima is struggling in her job and is experiencing increased dissatisfaction. She related to you that her manager has been unfa
oee [108]

Answer:

Cognitive dissonance

Explanation:

Cognitive dissonance is a psychological notion when an individual experiences thoughts and emotions that are not consistent (no matter the environment). In this example, it was expected from Fatima to quit her job (since she hated the manager). In spite of that, she continued to work. That caused the cognitive dissonance in her behavior, as she changed her attitude.

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3 years ago
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