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
Kaylis [27]
3 years ago
9

Bikul has just started a great job and plans to buy a fancy car worth $100,000. Bikul is risk-averse in money matters, but he li

kes to drive fast, so the probability that he wrecks the car (a total loss of $100,000) is 0.10. The probability that he has no accidents is 0.90. If an insurance company offers Bikul a fair insurance policy, the premium will be:
Select one:

a. $90,000.

b. It is impossible to calculate a premium unless we know Bikul's utility function.

c. $80,000.

d. $10,000.
Business
1 answer:
dedylja [7]3 years ago
6 0

Answer:

$10,000

Explanation:

Probability that Bikul wrecks the car is 0.10

loss of wrecking the car is $100000

Therefore risk of wrecking the car = Probability x loss

risk = 0.10 x 100000 = 10,000

premium can be equated with risk, hence premium = $10000

You might be interested in
The presence of pollution in the dry cleaning industry leads in the long run to dynamic inefficiencies because:
erica [24]

Answer:

D) firms whose average private cost is less than price will stay in (or enter) the dry cleaning

industry even though their average social cost exceeds price.

Explanation:

When there is pollution as a result of the daily business, then it involves a huge social cost, as you cause harm to public.

But company's do not consider it in making the decision for business, as it generally do not impact the business in financial matters.

As even if the average cost is less then revenue the profit will be there to run the business.

But till the moment the financial impact is not strong of the social cost the pollution will not affect.

5 0
3 years ago
As a new supervisor, you need to introduce yourself to your team of ten employees. the best medium for this type of non-routine
Stells [14]
The answer to this question is that the best medium would be a face to face meeting. A face to face meeting is a meeting where in group of people are being held in a specific meeting room to meet and discuss a specific agenda. Face to face meetings are said to be the best type of meeting because this ensures engagement and it is more efficient.
7 0
3 years ago
Nabors Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current Year
Alexandra [31]
Idk man sorry lol Abidjan’s
5 0
4 years ago
Gloria has an option to purchase the cottage she leases from her landlord. She can exercise the option within the next two years
Tju [1.3M]

The option that Gloria has to purchase the cottage that she leases from her landlord is called An option fee.

Gloria has an option to purchase this property here. Under this option, she and the landlord would have a mutually agreed percentage on the purchase price.

Gloria paid her landlord the $5000 in order for her to have the right that would enable her to buy this property at a later date in the future.

Read more on brainly.com/question/25684693?referrer=searchResults

3 0
2 years ago
QS 6-4 Perpetual: Inventory costing with FIFO LO P1 A company reports the following beginning inventory and two purchases for th
pogonyaev

Answer:

$544

Explanation:

LIFO means last in first out. It means it's the last purchased inventory that is the first to be sold.

The cost of the 250 units sold would be first deducted from the inventory purchased on the 25th

= 100 × 2.34 = $234

That leaves 250 - 100 = 150 units.

The cost of goods sold would be next allotted to the inventory purchased on the 9th

= 50 × 2.20 = $110

This leaves 150 - 50 = 100

The cost of the 100 would be alloted to the beginning inventory

100 × $2 = $200

Total cost of goods sold = $200 + $110 + $234 = $544

I hope my answer helps you

5 0
4 years ago
Other questions:
  • In the statement of cash flows, inflows and outflows of cash from buying and selling trading securities typically are considered
    6·1 answer
  • At December 31, 2018, Moonlight Bay Resorts had the following deferred income tax items: Deferred tax asset of $54 million relat
    10·1 answer
  • The higher the _____ that future earnings may not be achieved, the higher the return on investment investors demand.
    15·1 answer
  • Continuous reinforcement schedules are most useful during which phase of learning
    9·1 answer
  • Andy has a remaining balance of $845 on his credit card. His credit card company has an APR of 18 percent. How much will Andy pa
    14·1 answer
  • The common stock of United Industries has a beta of 1.34 and an expected return of 14.29 percent. The risk-free rate of return i
    11·1 answer
  • Lexi Company forecasts unit sales of 1,640,000 in April, 1,250,000 in May, 810,000 in June, and 1,650,000 in July. Beginning inv
    15·1 answer
  • Friends of the Court" documents filed by interested parties to encourage the Court to grant or deny certiorari, or to urge the C
    10·1 answer
  • Future Motors is expected to pay a $3.30 a share annual dividend next year. Dividends are expected to increase by 3.75 percent a
    5·1 answer
  • A country finds itself in the following situation: the government budget surplus is 2% of its GDP; private savings is 30% of GDP
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!