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

Question

1 Approved Answer

please show your work A casualty insurer issues a policy that protects against a loss that occurs 15% of the time at $500 and 10%

please show your work image text in transcribed
A casualty insurer issues a policy that protects against a loss that occurs 15% of the time at $500 and 10% of the time at $1000, otherwise there is no loss. There is a deductible of $100 and a maximum benefit of $500 after the deductible. What is the variance of the benefit

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

Intermediate Financial Management

Intermediate Financial Management

Authors: Eugene F. Brigham, Phillip R. Daves

12th edition

1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030

More Books

Students also viewed these Finance questions

Question

★★★★★
Methane, the principal component of natural gas, is used for heating and cooking. The combustion process is CH4(g) + 2O2(g) CO2(g) + 2H2O(l) If 15.0 moles of CH4 are reacted, what is the volume of...

Answered: 1 week ago

Question

★★★★★
6-6.Describe the predetermined overhead rate. What is the role of the predetermined overhead rate in product costing? 6-7.Ideally, what does an allocation base reflect between the overhead cost and...

Answered: 1 week ago

Question

★★★★★
4. Can you think of a reason why making cars safer would create negative externalities? Explain.

Answered: 1 week ago

Question

★★★★★
Preparing journal entries for income tax expense. An electric utility reports the following information about its income taxes for three recent years (amount in millions): (a) Give the journal...

Answered: 1 week ago

Question

★★★★★
please show your work A casualty insurer issues a policy that protects against a loss that occurs 15% of the time at $500 and 10% of the time at $1000, otherwise there is no loss. There is a...

Answered: 1 week ago

Question

★★★★★
Acquired $ 3 0 , 0 0 0 cash from the issue of common stock. Borrowed $ 4 0 , 0 0 0 cash from National Bank. Earned cash revenues of $ 4 8 , 0 0 0 for performing services. Paid cash expenses of $ 2 5...

Answered: 1 week ago

Question

★★★★★
Use a spreadsheet to estimate the accumulation in your retirement account during 20 years of your career as a chemical engineer. Turn in the spreadsheet along with the answers to the questions posed...

Answered: 1 week ago

Question

★★★★★
The Claude liquefaction process is to be applied to methane. Using the schematic of Fig. 5.13 for stream numbering, the key variables depend on the fraction of stream 3 that is liquefied, m 8 /m 3 ,...

Answered: 1 week ago

Question

★★★★★
Given the mean of a normal distribution, how can you find the median?

Answered: 1 week ago

Question

★★★★★
For the widget manufacturing system in Figure 10.12, Figure 10.12: Consider a modified case in which the plastics production process produces 1.5 kg of expanded (exp.) plastic and 0.85 kg of...

Answered: 1 week ago

Question

★★★★★
Figure P9.6(a) shows a heat-exchanger process whose purpose is to maintain the temperature of a liquid at a prescribed temperature. The temperature is measured using a sensor and a transmitter, TT...

Answered: 1 week ago

Previous Question Next Question