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gtnhenbr [62]
2 years ago
14

The main function of insurance is to Group of answer choices make healthcare free. reduce total spending on healthcare. pool the

risks of healthcare costs. all of the above.
Business
1 answer:
Mkey [24]2 years ago
7 0

Answer:

pool the risks of healthcare costs.

Explanation:

In Insurance, risk tolerance refers to the willingness of an individual or organization to take a risk in business transactions in order to get a potentially positive reward.

Simply stated, risk tolerance in insurance is the willingness of an insured individual to increase his or her Self-Insured Retentions (SIRs) or deductibles by the insurer. For instance, the high risk associated with investments such as stocks, high-yield bonds, is often perceived by investors to be worth the higher reward such investment brings.

Generally, insurance companies across the globe charge millions of their customers (insured) premiums every year. This gives them the privilege of having a pool of cash which can be used to cover the cost of losses and destruction to the asset of a small fraction or percentage of its customers.

This simply means that, since insurance companies collect premium from all of their customers for losses which may or may not occur, so they can easily use this cash to compensate or indemnify for losses incurred by those having high risk.

Hence, the main function of insurance is to pool the risks of healthcare costs.

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Bradford Company derived the following cost relationship from a regression analysis of its monthly manufacturing overhead cost:
Firdavs [7]

Answer:

Bradford's estimated variable manufacturing overhead cost is $127,200

Explanation:

The cost function=$83,000+$12M

where M stands for machine hours required to produce the expected output in the month under review.

Each one-six unit case of Bradford's single product requires two machine hours,hence 5,300 cases would require 10,600 hours(5,300*2hrs).

Total estimated variable manufacturing overhead=cost per machine hour*expected number of machine hours

cost per machine hour is $12 as seen in the cost function

estimated variable manufacturing overhead=$12*10,600=$127,200

3 0
3 years ago
When there is a full forward cover with the spot rate equal to the forward rate all of the following are true​ EXCEPT: A. The cu
Blababa [14]

Answer:

B. The hedge is asymmetric.

Explanation:

Hedging refers to a technique or a mechanism whereby firms and individuals aim for risk reduction, arising out of uncertain and volatile business situations, which may result into a heavy loss.

For example, an exporter entering into a forward contract to eliminate or reduce the risk of arising out of a future situation wherein, future receipts denominated in a foreign currency, receivable at a future date, may be less than same receipts receivable at current spot exchange rate as on today.

Currency hedge ratio depicts the proportion of total exposure which is covered by hedge w.r.t the total exposure itself.

Asymmetrical hedge refers to covering an exposure by an opposite position wherein the chances of earning profits are higher than the losses current position can lead to. Such an hedge would be similar to covering a call option with a put option. Asymmetrical refers to being of dissimilar or non equal size. Here, it refers to the dissimilarity between prospective profits and losses.

Under a perfect hedge, the loss position in a scenario is completely covered i.e 100% by a prospective gain in other situation, with there being negative correlation between the two scenarios such as if scenario 1 yields a profit, scenario 2 would yield a loss and vice versa.

8 0
3 years ago
Cindy invests $10000 in an account that pays an annual rate of 3.96%, compounding semi-annually. approximately how much does she
stiks02 [169]

Annual Compound Formula is:

A = P( 1 + r/n) ^nt

Where:

A is the future value of the investment

P is the principal investment

r is the annual interest rate

<span>n is the number of  interest compounded per year</span>

t is the number of years the money is invested


So for the given problem:

P = $10,000

r = 0.0396

n = 2 since it is semi-annual

t = 2 years

 

Solution:

A = P( 1 + r/n) ^nt

A = $10,000 ( 1 + 0.0396/2) ^ (2)(2)

A = $10000 (1.00815834432633616)

A = $10,815.83 is the amount after two years

6 0
2 years ago
A demand curve is built on the assumption that
Natali5045456 [20]

Answer: A demand curve is built on the assumption that only the demand and price of the good/service will change.

Explanation: A demand curve is a graph that shows the change in how much demand may change if price of the good/service changes well. The graph helps connect the relationship between both price and demand

6 0
3 years ago
Privatisation refers to .... 
Nana76 [90]

Answer:

B)Transfer of assets from public to private

Explanation:

the government no longer owns the asset and it is traded to the private sector or when the company is taken over by a few people.

8 0
3 years ago
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