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
DochEvi [55]
3 years ago
12

An insurance company knows that the average cost to build a home in a new California subdivision is ​$92 comma 297 and that in a

ny particular year there is a 1 in 41 chance of a wildfire destroying all the homes in the subdivision. Based on these data and assuming the insurance company wants a positive expected value when it sells​ policies, what is the minimum the company must charge for fire insurance policies in this​ subdivision?
Business
1 answer:
Marrrta [24]3 years ago
5 0

Answer:

The minimum the company must charge for fire insurance policies in California​ subdivision is $2,252.

Explanation:

We have the chance of a wildfire destroying all the homes in the subdivision is: 1/41 or nearly 2.44%.

The minimum the company must charge for fire insurance and still maintain a positive expected value is calculated as:

The average cost to build a home in the subdivision * the chance of a wildfire destroying all the homes in the subdivision = 92,297 * 2.44% = $2,252.

So, the answer is $2,252.

You might be interested in
The customer has decided to purchase a home instead of renting. The price of the home is $750,000 and the customer intends to pu
Natasha2012 [34]

Answer:

A. growth stocks and blue chip stocks immediately in the amount of $150,000 to obtain the necessary cash down payment

Explanation:

The customer wouldn't want to get the stock cashed out now, so he doesn't have to worry about the stock or market having a huge decline and so, he can't buy the house.

5 0
3 years ago
Business Information Management 1a: Introduction / Unit 2: The Finances of Business
Y_Kistochka [10]

The finances of businesses involve several things, including:

  • Revenue and profit.
  • Costs and expenses.
  • Budgets.

<h3>What are some components of finance in business?</h3>

The financial aspect of a business is hugely important to the success of the business because it involves making a profit which is the sole purpose of business.

In order to be successful in business, one needs a good financial plan. This plan will predict the revenue that the company should be earning in order to make profit.

It should also include the various costs and expenses that the business will incur as it engages in business. This financial plan usually comes in the form of a budget which provides ideas on how a business should spend money.

Note: Question was incomplete so a general overview of business finance was given.

Find out more on business finance at brainly.com/question/1265337.

5 0
2 years ago
Read 2 more answers
Which one would be correct I’m to lazy to think :)
Levart [38]
I think it’s the second one letter B
6 0
3 years ago
Senior management at jmj manufacturing accept that there are differences and similarities between host country and home country
Bumek [7]

This reflects​ geocentric attitude.

The World Trade Organization (WTO) is the only global international organization addressing manufacturing the principles of trade between nations. The North American trade Agreement (NAFTA) was implemented to market trade between the U.S., Canada, and Mexico.

A company's employees, managers and board of directors compose a business's internal stakeholders. Employees of the manufacturing corporation are invested within the company's performance to make sure they still be paid and retain their jobs.

The Agreement Establishing the WTO recognizes the necessity for positive efforts to make sure that developing countries, and particularly those who are least-developed, share within the growth of international trade.

They make it easier for nations to try and do business. They increase product choices for consumers. They prevent two nations from exchanging manufacturing  goods. Better risk management. One among the many advantages of international trade is market diversification.

learn more about manufacturing: brainly.com/question/19584679

#SPJ4

7 0
1 year ago
Choose the best answer for each of the following: ___1. If a company has an underfunded defined-benefit pension plan: A. no paym
Lera25 [3.4K]
Answer: A.


Explanation: I did it on study island.
7 0
3 years ago
Other questions:
  • Sage Hill Inc. Issues $254,000, 10-year, 10% bonds at 97. Prepare the journal entry to record the sale of these bonds on March 1
    9·1 answer
  • On December 31, 20X4, Pack Corp.'s Board of Directors canceled 50,000 shares of $2.50 par value common stock held in treasury at
    13·2 answers
  • Carey Anderson opened a software consulting firm that immediately paid​ $21,000 for a computer system. Was​ Anderson's computer
    5·1 answer
  • Thank yu for heping me
    12·1 answer
  • If people believe their rights are being violated, they have the right to a fair and impartial hearing. This reflects the basic
    8·1 answer
  • Which of the following statements about the importance of each competitive factors (but especially such highly influential facto
    8·1 answer
  • Rachel Radcliff earns an annual salary of $165,480. 42. How much Social Security taxes will be deducted from her salary in Novem
    5·1 answer
  • Give the human resource and it law​
    5·1 answer
  • f the price of orange juice rises 10%, and as a result the quantity demanded falls by 8%, the price elasticity of demand for ora
    6·1 answer
  • Cardiogenic shock following ami is caused by:
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!