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
seropon [69]
3 years ago
7

Both Nadia and Samantha are applying to insure their car against theft. Nadia lives in a secure neighborhood, where the probabil

ity of theft is 10%. Samantha lives in a lesser secure neighborhood where the probability of theft is 25%. Both Nadia and Samantha own cars worth $10,000, and are willing to pay $100 over expected loss for insurance.
1. How much would Nadia be willing to pay for the insurance?
2. How much would Samantha be willing to pay for the insurance?
3. Suppose the insurance company cannot tell them apart but expects them to be different values and charges them an average premium of $1850. Who is more likely to buy this insurance?
4. Suppose the insurance company cannot tell them apart but expects them to be different values and charges them an average premium of $1850. How much profit would it make?
5. If the insurance company can correctly anticipate the adverse selection, what premiums should it charge??
6. If the insurance company can correctly anticipate the adverse selection, who would be insured?
Business
1 answer:
Ivanshal [37]3 years ago
6 0

Answer:

i dont lknow like

You might be interested in
Conducting research about an occupation, company, or job can increase your employability. Please select the best answer from the
UkoKoshka [18]
Your answer will be true! good luck
7 0
3 years ago
Read 2 more answers
A gain or loss may be incurred if the sale or trade of an asset is greater than or less than the __________ value of the asset.
posledela
Your answer will be a
6 0
3 years ago
Bob Shockey borrowed $25,000 from his $250,000 cash value life insurance policy to send his daughter to private college. Assumin
MissTica

Answer:

e. $225,000.

Explanation:

Since Bob Shockey pays interest as in accrues, the amount the  beneficiary will receive if he dies before the debt is repaid will be the cash value of his life insurance policy minus amount borrowed to send his daughter to private college. This can be calculated as follows:

Amount to receive by beneficiary = $250,000 - $25,000 = $225,000

Therefore, his beneficiary will receive $225,000.

3 0
3 years ago
Closing costs are calculated based on _____. loan amount minus down payment down payment made selling price of the house selling
olga_2 [115]

Answer

Closing costs are calculated based on price of the house minus down payment

Explanation

Closing costs are either brought as cash to closing or financed into a loan.They are usually used when people buy or rent properties and the closing cost is the amount a person pays based on the down payment. To estimate the closing cost, you subtract the down payment from the purchase price of the home.

7 0
2 years ago
Depreciation is defined as the Group of answer choices a. decrease in the stock of capital due to investment by firms. b. decrea
bogdanovich [222]

Answer:

b. decrease in the stock of capital due to wear and tear.

Explanation:

Depreciation is a reduction in the value of an asset over time, due in particular to wear and tear.

Depreciation is the gradual decrease in the economic value of the capital stock of a firm, nation or other entity, either through physical depreciation, obsolescence or changes in the demand for the services of the capital in question.

The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation. ... Machinery, equipment, currency are some examples of assets that are likely to depreciate over a specific period of time.

4 0
3 years ago
Read 2 more answers
Other questions:
  • An investment offers a total return of 18 percent over the coming year. Janice Yellen thinks the total real return on this inves
    15·1 answer
  • Match the following terms to the correct definition. A measure of process output divided by input that helps us determine the ef
    12·1 answer
  • A company forecasts free cash flow in next year to be $20 million, $25 million in second year, and 30 million in third year. Aft
    5·2 answers
  • How and why do congress and the president rely on administrative agencies?
    15·1 answer
  • Alpha Manufacturing has interest expense of $12 million, total assets of $184 million, sales of $176 million, long-term debt of
    13·1 answer
  • Gideon Company uses the direct write-off method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off
    15·1 answer
  • In a period of rising prices, the inventory method which tends to give the highest reported inventory is
    11·1 answer
  • Ralph Lauren: Accounts receivable turnover and number of days' sales in receivables Ralph Lauren Corporation designs, markets, a
    15·1 answer
  • If supply-side policies succeed, less output is produced at every price level.
    8·2 answers
  • The difference between a change in supply and a change in the quantity supplied is that the latter is:.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!