Solution :
The risk averse is the person who wishes to reduce the uncertainty attached to the money.
Certain income = $2000.
50-50 chance of 1000 and 3000 would income expected income of
(0.5 x 1000) +(0.5 x 3000) = 2000
Both of them gives an equal amount of income while there is uncertainty attached with the second case which makes the risk averse person disincline to follow.
Hence the statement is FALSE.
Assume that the population level in a country is X. 5 percent of the population are likely to get affected by the disease due to which it makes a population of 0.05 X population to be effected by the disease. The population level will cost $38,000, hence making the total healthcare cost to be 1900 X.
Answer:
The following are the disadvantages and the advantages of bottom-up budgeting approach are as follows:
<u> Advantages of bottom-up budgeting approach:</u>
- The bottom-up budgeting approach helps in making the decisions very quickly as compared to all other budgeting methods.
- The main benefit of the bottom-up budgeting approach is that it helps in aligned the project goals in an organization by giving the specific direction.
- It helps in understand the resources, needs, expenses and the cost of each department in an organization.
<u> Disadvantages of bottom-up budgeting approach:</u>
- The bottom-up budgeting approach is complex as it sometimes cause misrepresent the budget figures in the given data.
- In this budgeting method there is also a lack of context and also expertise.
I’d say D because its being demanded more of
Answer:
Option D is correct
Explanation:
The cumulative loss in penalty of this option is the highest compared to the rest which makes it logical.
Answer:
$355 unfavorable
Explanation:
Budgeted supplies cost was [$1,860 + (635 frames x $ 11)] = ($1,860 + $6,985) = $8,845
Actual supplies cost was $9,200, so the variance was = budgeted cost - actual cost = $8,845 - $9,200 = $355 unfavorable
Since the actual supplies cost was higher than the budgeted supplies cost, then the variance must be unfavorable (because more money was spent than expected).
