Use the PACED decision-making process to make a decision or make a choice. The steps to follow when making a decision can be easily remembered when you use the word PACED:
P - What is the PROBLEM - Why is there a need to make a choice?
A - What are the ALTERNATIVES - What are the possible choices available?
C - Establish the CRITERIA - Why is one choice better than the other?
E - EVALUATE the alternatives - How well does each choice meet the criteria?
D - Make a DECISION - What is the best choice?
Answer:
Avicenna can expect to lose money from offering these policies. In the long run, they should expect to lose ___33__ dollars on each policy sold
Step-by-step explanation:
Given :
The amount the company Avicenna must pay to the shareholder if the person die before 70 years = $ 26,500
The value of each policy = $497
It is given that there is a 2% chance that people will die before 70 years and 98% chance that people will live till the age 70.
The expected policy to be sold= policy nominal + chances of death
= 497 + [98% (no pay) + 2% (pay)]
= 497 + [98%(0) + 2%(-26500)]
(The negative sign shows that money goes out of the company)
= 497 - 2% (26500)
= 497 - 530
=33
Therefore the company loses 33 dollar on each policy sold in the long run.
Answer:
3
Step-by-step explanation:
Each of the lines lengths multiply by 3.
