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Basile [38]
3 years ago
12

The probability that a 80-year-old female in the U.S. will die within one year is about 0.048711. An insurance company is prepar

ing to sell a 80-year-old female a one-year, $30,000 life insurance policy. How much should it charge for its premium in order to have a positive expectation for the policy? (Round your answer to the nearest dollar.)
Business
1 answer:
mamaluj [8]3 years ago
7 0

Answer:

$1,461

Explanation:

P(80-year-old female in the U.S. will die within 1 year) = 0.048711.

P(80-year-old female in the U.S. will survive one year) = 1 - 0.048711

P(80-year-old female in the U.S. will survive one year) = 0.951289

If 80-year-old female dies within one year, company will lose $(75000-x) but if she will survive, the company will make $x where x is the charge for its premium.

x(0.951289) - (30,000-x)0.048711 > 0

=> 0.951289x + 0.048711x - 30,000(0.048711) > 0

=> 1x - 1461.33> 0

=> x > 1461.33

=> x > 1461

x = $1,461

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Answer:

Using the weighted average method, the equivalent units produced by the department were:

= 8,760 units.

Explanation:

a) Data and Calculations:

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 Ending inventory             1,560

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Equivalent units of production:

Units completed            8,370         8,370 (100%)

Ending inventory           1,560            390 (25%)

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4 0
3 years ago
Investor perception on the risk of bonds will raise their desired return.
faust18 [17]

The statement, investor perception on the risk of bonds will raise their desired return is true.

The higher an investment's risk, the greater its potential returns should be. By contrast, a very safe and low-risk investment should generally offer low returns. So, this investor perception will raise the desired return of the risk of bonds.

Generally, the higher the potential return of an investment, the higher the risk. Thus, there is no guarantee that you will actually get a higher return by accepting more risk. In this matter diversification is useful.

Hence, you can minimize the risk by making sure the company's bond you own is not a high risk company with a high probability of paying back.

To learn more about risk of bonds here:

brainly.com/question/14850768

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3 0
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c. An agency relationship

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An agency relationship is a mutual relationship, in which one person (i.e the principle ) gives a permission to an agent so as to act on their behalf.

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Cash investment by stockholders will be categorized under financing activities while dividend paid can either be categorized as operating or financing activity.

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