The expected value of buying this insurance policy is $50.
The expected value of buying the insurance policy is the weighted average of probabilities of the cost of the insurance and the cover if Jacob gets into an accident.
If Jacob gets into an accident and is covered, his payout will be:
= benefit - cost
= 10,000 - 750
= $9,250
The probability of this happening is 8%.
If Jacob does not get into an accident he would lose the $750 he paid in insurance premiums. The probability of this happening is:
= 100% - 8%
= 92%
The expected value of the insurance is:
= (probability of accident * payout if there is an accident) + (probability of no accident * payout if there is no accident)
= (8% * 9,250) + (92% * -750)
= $50
<em>More information on expected value can be found at brainly.com/question/17069001.</em>
Answer:
d. Revenue of $375
Explanation:
The amount paid by the Vetmed associates is an expense for associates
The amount received by statisticians is a revenue for them
Mackie Services an intermediate between the two and so, the percentage amount received by Mackie Services is a revenue
Mackie's income statement would include a revenue of:
= Amount paid to statisticians * % Received
= $1,500 * 25%
= $375
Answer:
correct option is B. $10
Explanation:
given data
state income tax refund = $900
interest over payment = $10
solution
we know that Federal and the state income tax refund is an excluded from taxpayer taxable income to extent
so that here refund will not reduces amount of tax for given earlier year
so here amount of state tax refund and the interest is taxable in Clark 2020 federal income tax return is $10
so here correct option is B. $10
Answer:
Alpha shares currently exhibit a cost of 6.50%
Explanation:
According to the following formula, consider the calculation:
Cost of preferred stock = Annual dividend / (Price - flotation cost)
PS Alpha =6.5/100
6.50%
Alpha shares currently exhibit a cost of 6.50%
