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2 years ago

What role does math play in the insurance industry?

Business

1 answer:

Nataly_w [17]2 years ago

3 0

Answer:

The correct answer based on the options given is A)

Explanation:

Actuarial Science is a branch of mathematics predominantly used by the Insurance Industry to create a formula or mathematical model that enables them to charge a profit-oriented rate for a particular risk.

If insurance companies charge arbitrarily, they may overcharge thus leading to a collapse of the system. If they undercharge, the system of pooling risks becomes unsustainable as claim paying capabilities are reduced.

Hence the need to use a mathematical model to ensure that rates give room for the ability of the system to meets it's obligations when they arise and for the companies to make a profit.

The use of models is the reason why sometimes there are hard markets in insurance and at other times there are soft markets.

Cheers!

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Thomas was thinking about the car he wants to buy in a few years. He does not know what he should do now so that he can buy the

Otrada [13]

Thomas needs to think what it is he needs to buy the car. That is cash (money). What does he need to do to get money? He needs a job. Once he has a job and starts getting paid, he needs to SAVE the amount required for the down payment, unless he has the money to buy it cash! Meaning he can pay it in full. If he is only paying for the down payment, then he needs to make sure he has good credit to qualify for a loan on the remaining balance.

All in all he needs a plan!

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3 years ago

What are the advantages and disadvantages of common stocks

andrey2020 [161]

Advantages:

You can invest in companies with limited liability.
Common stocks offer a higher earning potential.
You can easily purchase common stock on virtually any trading platform.
Common stocks can provide dividends.
You’ll get to take advantage of a growing economy.

Disadvantages:

You are the last person to get paid during a company liquidation.
You don’t have much control over your investment.
Companies are not required to pay dividends on common stocks.
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Hopes this helps :)

5 0

2 years ago

A firm has the following accounts and financial data for 2007:

Oksi-84 [34.3K]

Answer:

The correct answer is $302.40.

Explanation:

According to the scenario, the computation can be done as:

To calculate firms' earning first we less cost of goods and total operating expenses from sales revenue:

= $3,060 - $1,800 - 600

= $660

Now we deduct the interest expense, then

= $660 - $126

= $534

Now we deduct tax rate, then

= $534 × $213.60 ( $534× 40%)

= $320.40

Now we finally deduct the dividends to get the firm's earning to common shareholder's, then

= $320.40 - 18

= $302.40

Hence, the firm's earning to common shareholder's is $302.40.

5 0

3 years ago

Cabell Products is a division of a major corporation. Last year the division had total sales of $25,320,000, net operating incom

Pie

Answer:

ROI = Net operating income x 100

Average operating assets

ROI = $1,924,320 x 100

$6,000,000

ROI = 32.1%

The correct answer is C

Explanation:

ROI is the ratio of net operating income to average operating assets multiplied by 100.

7 0

3 years ago

Par value a.is the monetary value assigned per share in the corporate charter b.is established for a share of stock after it is

nika2105 [10]

Answer:

c.represents what a share of stock is worth

Explanation:

Hope it helped...Please mark brainliest. Have a nice day!

4 0

2 years ago