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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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Principal Rate Time Interest Amount $ 720.00 6.00% 5 years a. $216.00 b. $936.00 720.00 6.00 5 months a. $18.00 b. $738.00 720.0
Komok [63]

Answer:

1- $216

2- $18

3- $0.59

4- $54

5- $10.77

Explanation:

1- If the investment lasts 5 years, with an interest of 6% and a principal of $ 720,00, the interest generated at the end of said investment arises from the following calculation:

(720 x 0.06) x 5 = X

43,20 x 5 = X

216 = X

Therefore, after 5 years of investment, they will have earned $ 216 in interest.

2- If the investment lasts 5 months, with an interest of 6% and a principal of $ 720, the interest generated at the end of said investment arises from the following calculation:

(720 x 0.06) / 12) x 5 = X

43.20 / 12 x 5 = X

3.6 x 5 = X

18 = X

Therefore, after 5 months of investment, they will have earned $ 18 in interest.

3- If the investment lasts 5 days, with an interest of 6% and a principal of $ 720, the interest generated at the end of said investment arises from the following calculation:

(720 x 0.06) / 365) x 5 = X

43.20 / 365 x 5 = X

0.118 x 5 = X

0.59 = X

Therefore, after 5 days of investment, $ 0.59 in interest will have been earned.

4- If the investment lasts 15 months, with an interest of 6% and a principal of $ 720, the interest generated at the end of said investment arises from the following calculation:

(720 x 0.06) / 12) x 15 = X

43.20 / 12 x 15 = X

3.6 x 15 = X

54 = X

Therefore, after 15 months of investment, they will have earned $ 54 in interest.

5- If the investment lasts 91 days, with an interest of 6% and a principal of $ 720, the interest generated at the end of said investment arises from the following calculation:

(720 x 0.06) / 365) x 91 = X

43.20 / 365 x 91 = X

0.118 x 91 = X

10.77 = X

Therefore, after 91 days of investment, you will have earned $ 10.77 in interest.

8 0
3 years ago
RealTurf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $50,000 purchase price
Jet001 [13]

Answer:

savings per year = $20,500 - $10,500 = $10,000

the loan and interest are not included in the calculation

initial outlay = $50,000

cash flows 1-8 = $10,000

cash flow 9 = $15,000

discount rate = 15%

using a financial calculator, the NPV = -$862.85, and the IRR = 14.53%

8 0
3 years ago
Which type of nominal decision is characterized by a fairly high degree of product involvement but a low degree of purchase invo
Ann [662]

Brand loyal decision is a type of nominal decision that is characterized by a fairly high degree of product involvement by a customer, but a low degree of purchase involvement.

<h3>What is Brand loyal decision?</h3>

A brand loyal decision can be defined as a type of nominal decision which involves a customer having a fairly high degree of involvement in the products offered by a producer (business organization) but a low level of involvement in its purchase.

This ultimately implies that, a brand loyal decision is characterized by a fairly high degree of product involvement with subsequent low degree of purchase involvement.

Read more on decision-making process here: brainly.com/question/1249089

3 0
2 years ago
What property describes the number sentence 6+0=6
Vika [28.1K]
Six pluse zero equal six
6 0
3 years ago
In year 1, Kris purchased a new home for $200,000 by making a down payment of $150,000 and financing the remaining $50,000 with
blondinia [14]

Answer: D. $7,500

Explanation:

Before the $150,000 mortgage at 5%, the existing $40,000 balance of the loan was paid off. Therefore, only the mortgage was payable. At 5% x %150,000 = $7500 interest.

Therefore, the amount $7500 interest expense Kris will deduct as home related interest expense would be $7,500.

4 0
3 years ago
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