Answer: While the EMV is negative, the utility gained from purchasing the insurance is positive, and high.
Explanation:
The options to the question are:
A) He believes that the actual likelihood of his death occurring in the next twelve months is really much greater than the actuarial estimate.
B) While the EMV is negative, the utility gained from purchasing the insurance is positive, and high.
C) Mr. Weed is not rational.
D) A or C
E) None of the above
From the question, we are informed that Robert Weed is considering purchasing life insurance and that he must pay a $180 premium for a $100,000 life insurance policy.
His beneficiary will get $100,000 if he dies and get nothing of he doesn't die. Even though there's a 0.001chanve of him dying, he eventually bought the insurance.
The reason for him buying the insurance is because EMV he realized that the utility that he will derive from buying the insurance is positive, and high. He believed that paying $180 for a chance to get $100,000 was worth the risk even if he had a slim chance of dying.
Answer:
$84,000
Explanation:
The computation is shown below:
Particulars Order Size Customer support Other Total
Manufacturing overhead $24,000 $408,000 $48,000 480000
Selling and administrative
expenses $60,000 $20,000 $20,000 $100,000
Total $84,000 $428,000 $68,000 $580,000
The allocation of manufacturing overhead is done in 5% 85% 10% 100%
The allocation of selling and administrative expense is done is 60% 20% 20% 100%
Answer:
A
Explanation:
95% confidence interval gives the lower and upper limit for the mean corn yield per acre
Lower limit is 128.4 bushel per acre and upper limit is 131.6 bushel per acre
Answer:
Ethnocentric
Explanation:
Ethnocentric policy is the staffing strategy used by multinational companies to assign key positions or managerial position to only home country´s nationals rather than local employee. It help in effective communication between host and home country, it allign the interest of home country with other host country, these policy help in smooth work flow and co-ordination with the headquarter. These companies does not differentiate in policy for foreign and domestic market.
Since you provide no options, a business can increase the demand for a product by :
- Lowering the price of the product
- Gathering market share by advertising the product to the public
- By increasing the quality of the product and gain recognition
hope this helps
