Answer:
Replacing the values that we have:
And solving for a we got:
So then the premium value for the insurance on this case should be 1840 dollars.
Explanation:
For this case we can define the random variable X as the gain ( in thousand of dollars) of insurance company
We assume that the premium clase charge and amount of a to the company and we know from the info given that:
represent the expected gain in thousand of dollars
The expected value of a random variable X is the n-th moment about zero of a probability density function f(x) if X is continuous, or the weighted average for a discrete probability distribution, if X is discrete.
And using the definition for a discrete random variable we know that :
Replacing the values that we have:
And solving for a we got:
So then the premium value for the insurance on this case should be 1840 dollars.
Answer:
Rightward; demand
Explanation:
Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a ___Rightward___ shift of the ___demand__ curve for bottled water.
When demand and supply are at balance, it means that equilibrium has been attained.
A shift in the demand means consumers are willing to buy more irrespective of the price.
Equilibrium price and equilibrium quantity is said to increase when there is a rightward shift in demand curve.
In this case, since, the equilibrium price of bottle water increased from $1 to $2 and equilibrium quantity of bottle water increased, therefore it can be said that there's a rightward shift in the demand curve of bottle water. The price change was as a result of change in demand
The primary concern is security.
Answer:
See below
Explanation:
a. Price variance
= (Actual price - Standard price) × Actual material
= ($15.12 - $14.40) × 44,600
= $0.72 × 44,600
= $32,112 Unfavourable
b. Quantity variance
= (Actual quantity - Standard quantity) × Standard price
= [44,600 - (6,500 × 7) ] × $14.40
= (44,600 - 45,500) × $14.40
= -900 × $14.40
= $12,960 Favourable
C. Cost variance
= Actual cost - Standard cost
= (44,600 × $15.12) - (7 × 6,500 × $14.40)
= $674,352 - $655,200
= $19,152Unfavourable
Answer:
0.3797 or 37.97%
Explanation:
According to the scenario, computation of the given data are as follow:-
Wants Rate on return on investment = 50%
Expected value of return on investment = invested amount × (1+g)^t
= $1,000,000 × (1+50%)^5
= $1,000,000 × 7.59375
= $7,593,750
Similar venture would achieve valuation of $20,000,000 for $2,000,000. We can expect that company would achieve similar valuation of $20,000,000 in 5 years from now.
Investor’s share value at 5 years = $7,593,750 ÷ $20,000,000
= 0.3797 or 37.97%
