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Dafna11 [192]
3 years ago
8

The law of large numbers says that when many people are insured, the probability distribution of the losses will assume a normal

probability distribution, a distribution that complicates pricing in life insurance. allows accurate predictions. hinders accurate predictions. is difficult to work with.
Business
1 answer:
Dahasolnce [82]3 years ago
6 0

Answer:

allows accurate predictions.

Explanation:

The law of large numbers  states that the larger the amount of policy holders, the probability distribution of the number of claims (losses for the insurance company) will be shaped like a normal distribution. This allows the companies to make more accurate predictions about the future number of claims.

In statistics, the law of large numbers states that as the sample size increases, the mean will be much closer to the real mean of the total population.

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When the Central Bank lowers the bank rate, borrowing from the central bank becomes cheaper and commercial banks borrow more fro
tresset_1 [31]

Answer:

= All

Explanation:

= U.S. exports increase, shifting U.S. aggregate demand to the right

= U.S. exports increase, shifting U.S. aggregate demand to the right

7 0
3 years ago
In an attempt to alter consumers' cognitive component of their attitude toward the Pepsi brand of cola, a freshness date was add
jenyasd209 [6]

Answer: ADD BELIEF STRATEGY

Explanation:In the given case Pepsi used the add beliefs strategy to change the mindset of the customers in the market. The add belief strategy in marketing is focused on increasing the confidence of the customer in the product.

By adding the freshness date on the cans, Pepsi was sending a message that they care for the health of the customers, thus, winning their confidence.

3 0
3 years ago
If you have a credit card with 15.99% APR that compounds monthly, what is the effective interest
RideAnS [48]

Answer: 17.22%

Explanation:

Effective interest rate is calculated by the formula:

=  (1 + APR / Number of compounding periods) ^ Number of compounding periods - 1

Number of compounding periods = 12 months in the year

= (1 + 0.1599/12)¹² - 1

= 0.172155

= 17.22%

7 0
3 years ago
On January 1, 2021 Rastell Co signed a long term finance lease for an office building. The terms of the lease required Rastall t
Alinara [238K]

Answer:

$145,726

Explanation:

Note: <em>The options to this question belongs to another question entirely and that is attached as picture. So, the correct answer is not among the 4 options</em>

Interest expense = Present value of lease payment * Interest rate

Interest expense = $151,146 * 7%

Interest expense = $10,580.22

Particulars                                                                           Amount

Present value of lease payment                                       $151,146

Add: Interest expense                                                       $10.580

Less: Annual Payments                                                     <u>($16,000)</u>

Lease Payable on December 31, 2021 Balance Sheet  <u>$145,726</u>

7 0
3 years ago
Suppose a competitive market is comprised of first that face identical cost curves. The firms experience an increase in demand t
umka2103 [35]

Answer:

i. New firms will enter the market

iii. In the long run, all firms will be producing at their efficient scale

Explanation:

In the competitive market barriers to entry will be low as there is no monopoly. The firms in the market are experiencing increased profitability as a result of increased demand so the market will be attractive for new firms. This will result in new firms entering into the market. In the short run.

In the long run as more firms enter the market, the firm's will need to produce at efficient scales because of high competition, with the aim of minimising cost.

6 0
3 years ago
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