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hjlf
3 years ago
10

"The insurance company gets information about gas leakage in several houses that use the same gas provider that your customer do

es. In light of this new information, the probabilities of total loss and 50% damage (that were originally .002 and .008, respectively) are tripled (to .006 for total loss and .024 for 50% damage). Obviously, this change in the probabilities should be reflected in the annual premium, to account for the added risk that the insurance company is taking. What should be the new annual premium (instead of $1,350), if the company wants to keep its expected gain of $750?"
Business
1 answer:
wlad13 [49]3 years ago
4 0

Answer: $2550

Explanation:

Note that the probabilities of total loss and 50% damage were tripled and the probability of no fire has therefore changed to:

1 - 0006 - 0.024 = 0.97.

The company wants to keep same annual gain from the policy ($750), and the question now is, what would the new premium (N) be which will satisfy this? To get this, we need to solve the equation for:

N:750 = (N - 100,000)(0.006) + (N - 50,000)(0.024) + N(0.97)

Thus, 750 = N - 600 - 1,200, or N - 1,800. Therefore,N= 750+1,800= 2,550.

To account for the added risk which the insurance company is taking by continuing insuring the customer, the premium changes from $1,350 to $2550

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coldgirl [10]

Answer:

wholesaler

Explanation:

A wholesaler is part of the downstream supply chain. It operates by purchasing large amounts of certain goods and then reselling them to smaller retailers. Wholesalers act as intermediaries between small retailers that are unable to purchase large amounts from manufacturers, but still need to purchase them at a discount price. Generally, wholesalers do not sell directly to the general public, only to other smaller businesses.

7 0
2 years ago
Physical distribution or shipping only refers to the process of transporting goods. True or false?
Natali [406]
The answer is FALSE. Hope this helps.
8 0
3 years ago
In the new department she is setting up, Shondra decides that top managers will report to her and that everyone else will report
Oksi-84 [34.3K]

Answer:

a) planning

Explanation:

Shondra performing the planning process of management functions. Planning means, first of all looking ahead and chalking out future courses of activity to be followed by each and every member of an organization as here Shondra is setting up a new department soon after she is chalking out future courses of duty of the manager and every member of the particular department which is very important for the smooth and effective running of an organisation.

5 0
2 years ago
Which of the following is true about checks?
tankabanditka [31]

Incomplete question. Here's the remaining question;

A. It is a two-party instrument.

B. It necessitates that the seller has to be both the drawer and the payee.

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Answer:

C

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Note that, to be always paid on demand implies that any time a request is made (demanded) to the bank will be fulfilled.

Therefore, an individual has a sense of security using checks to receive payments.

4 0
3 years ago
The Fortunato Corp.'s inventory at Dec 31, 2018, was $325,000 based on a physical count priced at cost, and before any necessary
AleksandrR [38]

Answer:

$405,000

Explanation:

The computation of the ending inventory reported is shown below:

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Add: Goods purchased from a vendor i.e shipping point $30,000

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Add: consignment by Brecht Inc $12,000

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In the above cases, the added items indicates the ownership is transferred to buyer , received by buyer and remains with the buyer

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3 years ago
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