This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A home insurance company anticipates the following pattern of claims, based on historical data. What ... (Read 102 times)

Themember4

  • Hero Member
  • *****
  • Posts: 538
on: Apr 25, 2021

Question 1

A company will earn 10% returns in a poor economy, 15% returns in a normal economy, and 25% returns in a booming economy. What is the standard deviation if there is a 25% chance of a poor economy and a 25% chance of a booming economy?
◦ 10.83%
◦ 5.45%
◦ 6.12%
◦ 11.18%
◦ 4.91%

Question 2

A home insurance company anticipates the following pattern of claims, based on historical data. What is the standard deviation of claims?

Type of ClaimSize of ClaimNumber of Claims out of 
10,000 Policy Holders		Probability
1$200,00010.0001
2$50,000100.001
3$2,0002000.02
4$09,7890.9789

◦ $2,562.79
◦ $6,567,900
◦ $2,000
◦ $110
◦ $3,753.52
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Themember4 on Apr 25, 2021

izzat

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


Themember4

  • Member
  • Posts: 538
Reply 2 on: Apr 25, 2021
Wow, this really help

sultana.d

  • Member
  • Posts: 320
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

The cladistic approach from molecular genetic data The cladistic approach from molecular genetic data
Heading for the ocean on a beach at the Pu'uhonua o Honaunau National Historical Park Heading for the ocean on a beach at the Pu'uhonua o Honaunau National Historical Park
Anatomy of the heart. Remember: It is labeled right and left based on the patient’s perspective. Anatomy of the heart. Remember: It is labeled right and left based on the patient’s perspective.
Temperature gradient generates a global pattern of circulation Temperature gradient generates a global pattern of circulation
Independent assortment for two traits in humans follows the same pattern of inheritance as traits in Independent assortment for two traits in humans follows the same pattern of inheritance as traits in
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Neurosynapse Animation

For a complete list of videos, visit our video library