FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. The average damage done by an earthquake it estimates

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. The average damage done by an earthquake it estimates to be $50,000. If the company offers earthquake insurance for $150, what is their expected value of the policy?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cohomological Aspects In Complex Non-Kähler Geometry

Cohomological Aspects In Complex Non-Kähler Geometry

Authors: Daniele Angella

1st Edition

3319024418, 9783319024417

More Books

Students also viewed these Mathematics questions

Question

★★★★★
According to Alan Krueger, an economist at Princeton University, the share of concert ticket revenue received by the top 1 percent of all acts rose from 26 percent in 1982 to 56 percent in 2003. Does...

Answered: 1 week ago

Question

★★★★★
Are the tasks undertaken by data labelers just for one time or longer lasting?

Answered: 1 week ago

Question

★★★★★
2. Educators often assume students are not bright because they have inadequate resources at home. This inadequacy manifests itself as a lack of familiarity with school-related activities. When this...

Answered: 1 week ago

Question

★★★★★
Mary Watson is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned $45,000 as a sales assistant for Focused Business Analytics; $3,910 of her wages was...

Answered: 1 week ago

Question

★★★★★
9. What is the amount of the annual coupon payment for a bond that has 5 years until maturity, sells for $1,045, and has a yield to maturity of 9.36%? A. $100.00 B. $93.60 C. $104.50 D. $105.28

Answered: 1 week ago

Question

★★★★★
Nonqualified private pension plans offer tax deferral benefits to employees, but with qualified plans, income is taxed before it is contributed to the plan. False O True

Answered: 1 week ago

Question

★★★★★
Problem 8: A 25 cm diameter pipe carries oil of Sp. Gr. 0.9 at a velocity of 3 m/s. At another section the diameter is 20 cm. Find the velocity at this section and also mass rate of flow of oil.

Answered: 1 week ago

Question

★★★★★
Create new users called andrew leclerck, aya aliyev, and mia sun. Their login names should be andrew-leclerck, aya-aliyev, and m-sun respectively. Create a group called admins with GID 2127. Add...

Answered: 1 week ago

Question

★★★★★
Becker & Smith, CPAs, performs a financial statement review for BAM Markets ( BAM ) . Caroline, the manager on the job, learns that Don, a member of the review team, violated the independence rules...

Answered: 1 week ago

Question

★★★★★
Milk Milk is one of the few remaining dairy farms that still supplies fresh milk for sale to customers through direct farm purchase, home delivery or selected store outlets. Milk is obtained from the...

Answered: 1 week ago

Question

★★★★★
Degnan Dance Company, Inc., a manufacturer of dance and exercise apparel, is considering replacing an existing piece of equipment with a more sophisticated machine. The following information is...

Answered: 1 week ago

Question

★★★★★
If we are given the following parametric equation r ( t ) = t i + l n ( s e c t ) j + 3 k , find the length of the curve from t = 0 to t = 4 . Ensure you show all steps of integration.

Answered: 1 week ago

Question

★★★★★
Verizon reports the following pension and health care benefits footnote as part of its \(10-\mathrm{K}\) report. a. Describe what is meant by service cost and interest cost. b. What payments did...

Answered: 1 week ago

Question

★★★★★
Harley-Davidson provides the following footnote in its \(10-\mathrm{K}\) report relating to the securitization of receivables by its finance subsidiary, Harley-Davidson Financial Services (HDFS). a....

Answered: 1 week ago

Question

★★★★★
The Best Buy 10-K report has the following footnote related to its leasing activities. \section*{Required} a. What is the balance of the lease liabilities reported on Best Buy's balance sheet? b....

Answered: 1 week ago

Previous Question Next Question