Answer:
a. 3,900
Explanation:
We find the probability of healthy persons & the weak out of the total population in the town.
Probability of healthy persons
P(h) = 600/1000
P(h) = 0.6
Probability of weak persons
P(w) = 400/1000
P(w) = 0.4
We find the pay off for both the healthy and the weak, then add up to get the expected value or the minimal annual premium
Expected Value = 0.6*$500 + 0.4*$9000
Expected Value = $300 + $9000
Expected Value = $3,900
So, the annual premium must be at least $3,900.
Answer:
The existence and growth of government trade barriers
Explanation:
Theodore Levitt proposed that with the advent of technology and the mass media, people's tastes would eventually converge leading to the globalization of markets around the world. Even though people from different nations tend to have different tastes, they were united by factors like love, peace, joy, etc. Levitt was encouraging companies to leverage on the mass media as well as technology to form a convergence of these uniting factors.
However, government trade barriers, which are restrictions placed by the government on the importation of goods into another country can serve as a hindrance to the globalization of markets. This would be in opposition to Levitt's proposal of a uniting factor in international trade. Government trade barriers tend to encourage the production of local goods against the importation of goods.
Answer:
a)
Dr Bad debts expense 1,787
Cr Allowance for doubtful accounts 1,787
b)
Dr Bad debts expense 4,813
Cr Allowance for doubtful accounts 4,813
Explanation:
Mazie Supply Co. Journal entry
a)
Dr Bad debts expense 1,787
($4813-$2,338+$688)
($4,813-$3,036)
Cr Allowance for doubtful accounts 1,787
b)
Dr Bad debts expense 4,813
(3%×$137,500+$688)
($4125+$688)
Cr Allowance for doubtful accounts 4,813
