Answer:
a) $2000
b) $1,886.7925
C) $2,036.7925
Explanation:
First, the question states to determine the expected claim cost per policy
Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.
A) Expected Claim Cost per policy
= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)
= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000
Part B: discounted expected claim cost per policy
Since, the sum of $2000 is expected to be paid by the insurer by the end of the year, the interest to be earned based on the rate (discounting used)
=$2,000 ÷ (1 + 0.06)
= $1,886.7925
Part C:: Determine the Fair Premium
Fair Premium is calculated as follows
The discounted policy claim cost + the Processing Cost per application + The fair profit loading
= $1,886.7925+ $100+50 = $2,036.7925
You have a franchised planet fitness gym. you began the business by paying your initial franchise fees and now you pay royalties on a regular basis. this typical fee structure for a franchise is an Example Of an advantage For An Franchisor.
In the aforementioned scenario, we first pay the initial franchise fees and then we are required to pay royalties on a regular basis. As a result, it is obvious that the franchisor benefits financially and that overall growth also benefits because the franchisor does not assume any risk in the Planet Fitness Gym; instead, they merely provide their franchises and receive regular basis income.
Additionally, they lower market and gym startup costs, among other things. They also gain from the fact that opening a new gym raises the value of their brand in the marketplace, which helps the franchisor long-term and accelerates their overall growth.
A franchise is a kind of license that gives a franchisee access to a franchisor's confidential company information, operational procedures, and trade names, enabling the franchisee to conduct business under the franchisor's brand.
Learn more about franchise here
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Answer:
Economy's marginal social benefit=$65
Explanation:
The economy's marginal social benefit can be calculated by getting the average of the individual marginal benefit.
This can be expressed as;
Economy's marginal social benefit=Sum of individual marginal benefit/Total number of individual's
where;
Sum of individual marginal benefit=John's marginal benefit+Nick's marginal benefit+Christina's marginal benefit=(80+50+65)=$195
Total number of individuals=3
replacing;
Economy's marginal social benefit=195/3=65
Economy's marginal social benefit=$65
Answer:
9.14%
Explanation:
Tax exempt yield = 6.40% = 0.064
Marginal tax rate = 30% = 0.30
Equivalent taxable yield = Tax exempt yield / (1 - marginal tax rate)
Equivalent taxable yield = 0.064 / (1 - 0.30)
Equivalent taxable yield = 0.064 / 0.70
Equivalent taxable yield = 0.0914286
Equivalent taxable yield = 9.14%
Answer:
The option that maximizes Maggie's taste index is 1 snack bar and 2 ice creams
Explanation:
<u>snack bar</u> <u>ice cream</u>
37 grams 65 grams
120 calories 160 calories
5 grams of fat 10 grams of fat
Maggie wants to consume up to 450 calories and 25 grams of fat, but she needs at least 120 grams of dessert per day. Ice cream taste 95, snack bars 85.
- maximize taste index = [85(37X) + 95(65Y)] / (37X + 65Y)
- 5X + 10Y ≤ 25 ⇒ CONSTRAINT 1
- 120X + 160Y ≤ 450 ⇒ CONSTRAINT 2
- 37X + 65Y ≥ 120 ⇒ CONSTRAINT 3
- X ≥ 0 ⇒ CONSTRAINT 4
- Y ≥ 0 ⇒ CONSTRAINT 5
maximum possible combinations following constraint 1, 4 AND 5:
- option 1: 1 snack bar - 2 ice creams (5 + 20 = 25)
- option 2: 2 snack bars - 1 ice cream (10 + 10 = 20)
- option 3: 3 snack bars - 1 ice cream (15 + 10 = 25)
possible combinations following constraint 2:
- option 1: 1 snack bar - 2 ice creams (120 + 320 = 440)
- option 2: 2 snack bars - 1 ice cream (240 + 160 = 400)
possible combination following constraint 3:
- option 1: 1 snack bar - 2 ice creams (37 + 130 = 167)
- option 2: 2 snack bars - 1 ice cream (74 + 65 = 139)
since we only have two possibilities, we can calculate which one generates the highest taste index
maximize taste index = [85(37X) + 95(65Y)] / (37X + 65Y)
- option 1: 1 snack bar - 2 ice creams = [85(37) + 95(130)] / (37 + 130) = (3,145 + 12,350) / 167 = 92.78
- option 2: 2 snack bars - 1 ice cream = [85(74) + 95(65)] / (74 + 65) = (6,290 + 6,175) / 139 = 89.68
