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Pachacha [2.7K]
3 years ago
9

In supermarket retailing, _____ percent of endcaps should be unadvertised "sale" items that will cause the customer to be alert

when looking at an endcaps while traveling through the store.
Business
1 answer:
Darya [45]3 years ago
5 0

In supermarket retailing, 25 percent of end caps should be unadvertised "sale" items that will cause the customer to be alert when looking at an end caps while travelling through the store.

Explanation:

"Unadvertised" means that only clients who are shopping in this store are advertised.

For example is an item that was marked down in between printings for the weekly store sales flyers.

So the deal may not have made the flyer, but you will see the shelf label that marks the item as discounted once it is in the store.

Unadvertised retail prices play a competitive role. For this model, we produce a balance of rational prospects in which each store randomly announces the cost of one product in accordance with a blended approach.

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"Which of the following is correct?
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3 years ago
An insurer sells a very large number of policies to people with the following loss distribution: $100,000 with probability 0.005
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a) $2000

b)  $1,886.7925

C) $2,036.7925

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First, the question states to determine the expected claim cost per policy

Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.

A) Expected Claim Cost per policy

= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)

= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000

Part B: discounted expected claim cost per policy

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=$2,000 ÷ (1  + 0.06)

= $1,886.7925

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The discounted policy claim cost + the Processing Cost per application + The fair profit loading

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Read 2 more answers
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