1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Exercise 8-3
7nadin3 [17]

Answer:

(a) Prepare the entries to record sales and collections during the period.

  • It had net credit sales of $800,000  

Dr Accounts receivable $ 800,000

Cr Sales $ 800,000

  • Collections of $763,000.

Dr CASH $ 763,000

Cr Accounts receivable $ 763,000

(b) Prepare the entry to record the write-off of uncollectible accounts during the period.

  • It wrote off as uncollectible accounts receivable of $7,300  

Dr Allowance for Uncollectible Accounts $ 7,300

Cr Accounts receivable $ 7,300

(c) Prepare the entries to record the recovery of the uncollectible account during the period.

  • However, a $3,100 account previously written off as uncollectible was recovered before the end of the current period.  

Dr Accounts receivable $ 3,100

Cr Allowance for Uncollectible Accounts $ 3,100

(d) Prepare the entry to record bad debt expense for the period.

  • Uncollectible accounts are estimated to total $25,000 at the end of the period.  

Dr Bad Debt Expense $ 20,200

Cr Allowance for Uncollectible Accounts $ 20,200

Explanation:

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the estimated value of $25,000

Because the company already has a CREDIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that complement the existing value and reflect the estimated value, $ 20,200  

Bad accounts are those credits granted by the company and there is no possibility of being charged.

When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible.

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

7 0
3 years ago
What is the importance of effective communication to a successful life
ICE Princess25 [194]

1) Skills is the ability to listen.

2) Understand the mission and goals of their company and what their responsibilities are.

4 0
3 years ago
Which of the following is an example of a successful effort at branding?
ruslelena [56]

The correct answer is B. The word "google" has been added to the dictionary.

Explanation:

Branding implies making the name, symbol, and purpose of a company identifiable for the customers. This means, the customers known the purpose of the company, its products, and they can easily remember the name of it, which is important to make a company stood out over similar companies. Additionally, branding often implies customers associate any element of the company with positive ideas.

Branding can be seen in the case of Google company and the fact the name of the company was added to the dictionary because this shows the name of the company and products of it are identified by thousands of consumers, which shows how effective was the branding strategy of the company to define the identity of the company and convey this idea to customers.

7 0
3 years ago
Kellyanne hired Joshua from Southwest University. He was an amazing employee and exceeded all her expectations. The next year, s
Anastasy [175]

Answer:

Representativeness heuristic bias

Explanation:

Representativeness heuristic bias occurs when there are similar events whose probability of occurrence is assumed to be the same. People mistakenly assume there is a close relationship between the two events than there really is.

For example of John is a lawyer, he is judged to be a lawyer because of expression of various traits associated with lawyers.

Kellyanne hired Joshua from Southwest University. Because of his outstanding performance, it is assumed that other considered from Southwest University will also perform outstandingly.

This is a form of representativeness heuristic bias

7 0
3 years ago
Self-imposed budgets typically are:
Pepsi [2]

Answer:

C. subject to review by higher levels of management in order to prevent the budgets from becoming too loose.

Explanation:

Self-imposed budgets typically are subject to review by higher levels of management in order to prevent the budgets from becoming too loose.

Self-imposed budget also known as the participative budget is a type of budget where individuals having responsibility for controlling costs, prepares their own budget estimates and present them to the top level of management for review.

3 0
2 years ago
Other questions:
  • Hannah has been researching sales of garden supplies. She wants to show the pattern that sales follow over the course of a year.
    5·2 answers
  • What sourcing category would the following items typically be classified in? Item A: high volume/value, low risk, multiple poten
    12·1 answer
  • Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fix
    5·1 answer
  • In the context of prototyping during the design phase of the systems development life cycle (sdlc), a _____ shows users how a pa
    9·1 answer
  • On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent food poisoning complain
    13·1 answer
  • Which of these emotions are personal benefits of work?
    11·2 answers
  • Let us suppose that a hospital wants to set their fees for an overnight stay such that the contribution margin on a hospital roo
    9·1 answer
  • Explain what would happen if there was safety issue of renting the apartments
    8·1 answer
  • Which of the following is NOT one of the five basic functions of an
    6·1 answer
  • By buying a ________ bond, investors may choose to exchange their bond for shares of common stock in the company.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!