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
GaryK [48]
3 years ago
5

An insurance policy sells for ​$1200. Based on past​ data, an average of 1 in 100 policyholders will file a ​$10 comma 000 ​clai

m, an average of 1 in 250 policyholders will file a ​$40 comma 000 ​claim, and an average of 1 in 400 policyholders will file an ​$80 comma 000 claim. Find the expected value​ (to the​ company) per policy sold. If the company sells 30 comma 000 ​policies, what is the expected profit or​ loss?
Business
1 answer:
Tanzania [10]3 years ago
3 0

Answer:

Expected Value = $740

Expected profit = $22.2m

Explanation:

We can easily calculate the expected value and expected profit/loss in this situation by some minor working

Expected values = Expected Claim - per policy cost

Expected profit/loss = (Expected claim - per policy cost) x number of policies

As you can see per policy cost and no of policies are given in the question data we just need to find expected claim for calculation of expected profit or loss and expected value

Expected Claim = (1/100x$10,000)+(1/250x$40,000)+(1/400x$80,000)

Expected Claim = 100 + 160 + 200

Expected Claim = 460

Now we have a value of expected claim lets put it into Expected profit/loss formula and expected value formula

Expected value = 460-1200

Expected value = -740

-$740 is the value per policy

Expected profit/loss = (460 - $1200 per policy) x 30,000

Expected profit or loss = -22,200,000

Expected loss to the customer = -$22.2 m

Expected profit for the company = $22.2m

You might be interested in
Frank is an employee of Guitar Makers, LLC. Guitar's employee manual states that workers, such as Frank, will be dismissed only
sladkih [1.3K]

Answer:

Contract theory

Explanation:

Contract theory -

It refers to the study of the ability of the people or the organisation to generate and develop the legal agreements is referred to as the contract theory .

The theory is based on economic as well as financial behaviors .

The method is helpful to provide information about the contracts and their provisions along with the memorandums of understanding and letters of intent .

Hence , from the given information of the question ,

The correct answer is Contract theory .

4 0
3 years ago
How many people lost their jobs when the minimum wage increased from $12 to $18
Inessa05 [86]
I would say 33.. But im not 100% sure
3 0
3 years ago
Amy is concerned with her​ organization's inability to solve problems quickly. She believes that more people should be included
Licemer1 [7]

Answer: Amy is <em>concerned </em>with her​ organization's i<em>nability to solve problems</em> quickly. Several <u>subordinates have complained</u> to her that they feel alienated from the management <u>making the decisions</u> about their jobs with<u> no input </u>from them.

The element that Amy should address is the Chain of command.

Explanation:

A chain of command is a system for sending inside information of organizations with strong, vertical and authoritative structures.

The continuous flow of the chain of command clearly establishes the authority, revealing this depending on who reports to whom.

We must take into account the Authority and the Unit of command. This last is very important because it states that each supervisor must inform only one superior and like this the company preserves the continuous line of authority so all employees are heard and their ideas are taken into consideration for making decisions.  

3 0
3 years ago
How much total interest will Molly pay using this plan?
aleksandrvk [35]
Theres no equation sorryy
8 0
2 years ago
A(n) ______ allows the free movement of factors of productions among member countries, eliminates trade barriers among member co
Alecsey [184]

Answer:

common market

Explanation:

5 0
2 years ago
Other questions:
  • In the relationship depicted by the curve Productivity1, which of the following statements are true regarding the relationship b
    6·1 answer
  • Meena Chavan​ Corp.'s computer chip production process yields DRAM chips with an average life of 1,600 hours and sigma ​= 80 hou
    14·1 answer
  • Alice helped a sales manager place an ad on job boards and hire five new salespeople. She calculates that the total cost to recr
    8·2 answers
  • "Gaston owns" equipment that cost $28,500 with accumulated depreciation of $5,700. Gaston asks $22,500 for the equipment but sel
    15·2 answers
  • What types of businesses are likely to have an informal corporate culture?
    7·2 answers
  • A ________ is a registered representative acting as an intermediary to buy and sell securities for clients.
    8·1 answer
  • Because financial markets are ____, securities buyers and sellers do not have full access to information and cannot always break
    12·2 answers
  • MC Qu. 98 Garcia Corporation's April sales forecast... Garcia Corporation's April sales forecast projects that 6,100 units will
    9·1 answer
  • Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.5 pound
    11·1 answer
  • The degree to which a customer will continue to buy from a specific vendor over time is called customer?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!