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motikmotik
3 years ago
11

The average life of a certain type of small motor is 10 years with a standard deviation of 2 years. the manufacturer replaces fr

ee all motors that fail while under guarantee. if she is willing to replace only 3% of the motors that fail, how long a guarantee should be offered? assume that the lifetime of a motor follows a normal distribution
Business
1 answer:
Tomtit [17]3 years ago
3 0
The given are the following: Replacement = 3% or -1.88 from z-tables; Average Life = 10 years Standard Deviation = 2 years. 

Solution
Find how long a guarantee should be offered

10 years - 2 years * 1.88 = 6.24 years  or 75 months
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Following are the solution to the given question:

Explanation:

Please find the graph image in th e attachment file.

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Sofia worries that if something happens to her husband and he dies, she will lose everything—their home, their cars, etc. Which
pochemuha

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D. life insurance company

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Life insurance protects against loss of income as a result of the death of the insured. It is an agreement where the insurance company accepts to pay the beneficiaries the stated sum of money when the insured dies.

Sofia should consult a life insurance company and find out the available plans that can provide relief should her husband die. Usually, insurance companies have policy plans that provide coverage against different types of risks. They also offer medical and life insurance.

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3 years ago
Explain the difference between primary and secondary data
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Answer:

Key Differences Between Primary and Secondary Data

Primary data is a real-time data whereas secondary data is one which relates to the past. Primary data is collected for addressing the problem at hand while secondary data is collected for purposes other than the problem at hand.

Explanation:

Hope this helps.

5 0
4 years ago
Advertising begins with the ________, the person or organization that uses advertising to send out a message about its products.
irina1246 [14]

Answer:

<u>Advertiser</u>

Explanation:

Advertising refers to promoting a product or a service with an objective to enhance it's sales and identify the prospective buyers of a product.

Advertisement medium may include , print media advertisements such as journals, newspapers, catalogs, posters, magazines, etc.

Advertising may also utilize visual space and audio means such as advertisements on radios, televisions, internet, etc.

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3 0
3 years ago
Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 4
nignag [31]

Answer:

The required rate of return of Portfolio is 8.83%

Explanation:

First we need to find the risk Premium of Existing Portfolio using the CAPM model.

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9.50% - 4.20% = ( Rm - RF ) x 1.05

5.30% = (Rm - RF) x 1.05

(Rm - RF) = 5.30%/1.05

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Second we need to find the New Portfolio Beta Using the Following step

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Portfolio Beta = (10M / 15M) x 1.05 + (5M/15M) x 0.65 = 0.9167

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Required Rate of Return = 8.83%

5 0
3 years ago
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