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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.

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What can be a benefit of using interviews to select employees to hire?
AlexFokin [52]

Answer:

B. Accurate prediction of honesty

Explanation:

Interviews are one of the most effective tools that human resource managers use to  determine if a candidate is a match or not for a specific job. Flexibility is the key word here.  That allows both the candidate and the interviewer, the possibility of understanding what are  the skills needed for a certain job and if the candidate possesses them. When someone  answers a test, you can tell if the candidate knows about the subject or not, but when he/she is interviewed, you can ask for more detail and examples that help clarify the candidate's  ideas, expectations and capabilities.  E.g. a candidate states that he/she knows how to use WordPress very well, and the interviewer can ask him/her about specific tasks to verify if that is true.

6 0
3 years ago
Read 2 more answers
Amram Inc. can issue a 20-year bond with a 6% annual coupon at par. This bond is not convertible, not callable, and has no sinki
Reil [10]

Answer:

B) The coupon rate could be less than, equal to, or greater than 6%, depending on the specific terms set, but in the real world the convertible feature would probably cause the coupon rate to be less than 6%.

Explanation:

Amram Inc. is issuing two bonds, one is not convertible and the other one is convertible and callable. Regardless of the coupon rate that they plan to set, convertible and callable bonds will usually (almost always) have a coupon rate that is lower than non-convertible or non-callable bonds.

Convertible bonds are bonds that can be converted or exchanged to common stock. Since convertible bonds offer more investment options, their risk is lower than non-convertible bonds.

Callable bonds is a bond that can be redeemed before the maturity date.

7 0
3 years ago
Suppose you deposited $5,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. How much would be
sleet_krkn [62]

Answer:

$5,175

Explanation:

The computation of the amount after 8 month is as follows

As we know that

Amount = Principal × (1 + interest rate × number of days ÷ total number of days)

where,

Principal = $5,000

Interest rate = 5.25%

Number of days = 30 days × 8 months = 240 days

And, the total number of days = 360 days

So, the amount after 8 months is

= $5,000 × (1 + 5.25% × 240 days ÷ 360 days)

= $5,000 × 1.035

= $5,175

8 0
3 years ago
For each transaction,
Misha Larkins [42]

Answer:

1) I used an excel spreadsheet

2) a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value.

Dr Cash 7,000

Dr Equipment 3,000

    Cr DeShawn Tyler, capital 10,000

b. On May 21, Elegant Lawns purchases office supplies on credit for $500.

Dr Office supplies 500

    Cr Accounts payable 500

c. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.

Dr Cash 4,000

    Cr Landscaping Revenue 4,000

d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.

Dr Cash 1,000

    Cr Unearned Landscaping Revenue 1,000

3)

Cash (101)

debit                    credit

7,000

4,000

<u>1,000                              </u>

12,000

Office Supplies (124)

debit                    credit

500

Equipment (167)

debit                    credit

3,000

Accounts Payable (201)

debit                    credit

                            500

Unearned Landscaping Revenue (236)

debit                    credit

                            1,000

D. Tyler, Capital (301)

debit                    credit

                            10,000

Landscaping Revenue (403)

debit                    credit

                            4,000

Download pdf
3 0
3 years ago
Bailee works approximately 60 hours each week as an account executive with an advertising agency and rarely has time to shop. Sh
Papessa [141]

Answer:

Correct option is (a)

Explanation:

Convenience is one the most important benefit offered by online shopping websites. Not every fashion store offers services round the clock. The biggest advantage of online shopping is that it is one stop destination to purchase all types of products. It offers anytime anywhere shopping experience with no extra efforts in terms of time and waiting in queues. Products are delivered to the customer's doorsteps.

Bailee works 60 hours a week and has no time for going out for shopping. She loves the convenience of shopping online as she can shop sitting at home even at midnight and the product is delivered to her within 24 hours.

6 0
3 years ago
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