Suppose a company charges an annual premium of $120 for an insurance policy for minor injuries. Actuarial studies show that in c
ase of an injury claim, the company will pay out an average of $900 for outpatient care and an average of $3000 for an overnight stay in the hospital. They also determine that, on average, each year there are five claims made that result in outpatient care for every 1000 policies and three claims made that result in an overnight stay out of every 1000 policies. What is the expected annual profit of an insurance policy for the company
Rainy day fund is called a type of basic regular saving accounts. This account contains around 500 dollars to 1000 dollar It is like a payday loan. It is a type of liquid or we can say that it is like cash.
It is best in a bank account. such as saving account to pay the daily basis debts. Here people can access their money very quickly. When it is spent, you can again start to save for the future happening again.
The Economies of scope means the reduction of the average costs under the production of two or more products or services together. This must always be observed in the production process, in order to strategically plan the entire internal production process of the company. By implementing this type of joint production, great savings are achieved in own production factors, seeking effective diversification in the market.
