Answer:
With this policy throughout the long run, the insurance company will make money. A further explanation is provided below.
Explanation:
According to the given values in the question,
The expected value will be:
⇒ 
By putting all the given values, we get
⇒ 
⇒ 
⇒ 
($)
As we can see that,
Thus the above is the correct answer.
Answer:
3,220 units
Explanation:
The computation of the material quantity variance is shown below:
Direct material quantity variance = Standard Price × (Standard Quantity - Actual Quantity)
$750 = 2 gallons × $12.50 × (6,500 gallons ÷ 2 - actual quantity)
$750 = $25 × (6,500 gallons ÷ 2 - actual quantity)
$30 = 3,250 - actual quantity
So, the actual quantity would be
= 3,250 - $30
= 3,220 units
The Standard Price is computed below:
= 2 gallons × $12.50
The standard quantity is computed below:
= 6,500 gallons ÷ 2
= 3,250 units
Answer: a) the price level is less than the expected price level.
Explanation:
When the actual output in an economy is lower then the natural output it is called a Contractionary Gap and the price level will be lower.
This is because the Short Run Aggregate Supply Curve and the Demand curve will intersect at a lesser quantity which will equate to a lower price as well because the economy is producing less and the people are demanding less as well so the point at which they meet will be a lesser price.
<span>Of the four rights that Kennedy mentioned, this would be the right to safety. He felt that products should be made in a way that they would not hurt someone who used it in the proper manner. The other rights he mentioned were the rights of being informed, rights to choose, and rights to be heard.</span>
