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

Question

1 Approved Answer

In Manama, ABC Insurance covered 5,000 commercial spaces for 2021. The company estimates that there is a 2% chance of loss caused by any peril

In Manama, ABC Insurance covered 5,000 commercial spaces for 2021. The company estimates that there is a 2% chance of loss caused by any peril in the area covered. In addition, per historical data, 350 to 120 buildings experience some form of loss in a year.

a. What is the expected value of loss?

(3 marks for the correct process + 2 marks for the correct answer = 5 marks)

b. What is the objective risk of the area covered by ABC?


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

Step: 3

blur-text-image

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

Capital And Finance

Capital And Finance

Authors: Peter Lewin, Nicolás Cachanosky

1st Edition

0367514559, 978-0367514556

More Books

Students also viewed these Finance questions

Question

Do we use internal and external benchmarks to their fullest? Are there places we can experiment with this? P987

Answered: 1 week ago

Question

★★★★★
1. Put yourself in Pierce Ledbetters shoes (and watch where you step!). Discuss the advantages and disadvantages of organizing Zoo Doo as a sole proprietorship, a partnership, or a corporation. Think...

Answered: 1 week ago

Question

★★★★★
Please answer the questions in Excel and show how it is done with formulas. Bronco, Inc. has identified two projects project, but can only perform 1 of them. The cash flows for the two projects are...

Answered: 1 week ago

Question

★★★★★
Problem 3 Show all supporting work for the following calculations Calculate cost of financing over the life of a $3,000,000, 6%, 20 year bonds issued at par Calculate cost of financing over the life...

Answered: 1 week ago

Question

★★★★★
Take a moment to reflect on leaders you admire. Select two people who you regard as exemplary leadersone well known and one less well known. Describe the traits and qualities they possess that...

Answered: 1 week ago

Question

★★★★★
For this assignment, you are a student accruing your fieldwork experience hours at Sunrise Autism Center. Sunrise would like you to complete technician evaluations so you can earn hours and the...

Answered: 1 week ago

Question

★★★★★
4. Mrs. Burgess is a sixth-grade language arts teacher whose class includes Renata, a student with a significant cognitive disability. Mrs. Burgess is planning a unit in which her students will read...

Answered: 1 week ago

Question

★★★★★
Prepare the income statement and the statement of owner's equity for the month of June, and the balance sheet as of June 30. Nina Niko launched a new business, Niko's Maintenance Co., that began...

Answered: 1 week ago

Question

★★★★★
The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of the data were destroyed by a computer malfunction. Sales Revenue Finished Goods...

Answered: 1 week ago

Question

★★★★★
1-8 Rabatt operates deep-discount stores offering housewares, cleaning supplies, clothing, health and beauty aids, and packaged food throughout Germany, with most items selling for 1 euro. Its...

Answered: 1 week ago

Question

★★★★★
1-7 Warbenton Snack Foods is a manufacturer of potato crisps and savoury snacks in the U.K. Warbentons financial department uses spreadsheets and manual processes for much of its data gathering and...

Answered: 1 week ago

Question

★★★★★
1-3 What academic disciplines are used to study information systems and how does each contribute to an understanding of information systems? List and describe each discipline that contributes to a...

Answered: 1 week ago

Previous Question Next Question