Betty Bad and Gary Good have the following expected claims distributions:Betty BadGary GoodLossProbabilityof Loss.10.20.30$ 0.40$10,000 .05$5,000 .10$1,000 150 .70$10,000$5,000$1,000$What are the expected claims costs for Betty Bad and Gary Good respectively?What is the expected average claims cost per policy for a pool in which 50% of theparticipants have claims distributions identical the Betty Bad and 50% have claimsdistributions identical to Gary Good.i) If insurers cannot distinguish the Goods from the Bads, what is the potential problemwith charging everyone a premium equal to the expected average claims costs?

Given, the expected claims distribution table. Expected claim cost = Sum product of Probability and…

Answered: Betty Bad and Gary Good have the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

find mean and sd . Outcome Probability 1 0.2 2 0.5 3 0.2 4 0.1
EIGHTEEN. A risk response plan can be used to identify increasing levels of detailed risk analysis. True False
1. There are two approaches to the implementation of ERM, namely the measurement driven approach and the process-control approach. What is the focus of the measurement driven approach in implementing ERM? 2. Write a small paragraph on the concept of maximum foreseeable loss (MFL) and its significance in risk management. Question 2 1. Distinguish between the.'Maximin', 'Maximax·• and the 'Minimax regret' decision strategy. 2. Determining the size or quantum of a possible loss provides a backdrop against which efforts to manage the risk can be measured .Highlight the measures used to enhance the description of possible loss more accurately
Assume Bristol-Myers Squibb is faced with one source of business risk as worker's injury. The probability of worker injury is 0.09 and when the accident (injury) happens, the losses from a worker's injury has medical expenses of $8,000 and lost pay expenses of $90,000. What is the expected loss per worker? A-- $8,820 B-- $7,056 C-- none of the answers is correct D-- $7,417 E-- $17,640
b. Indicate where in the risk matrix the following example of risks would fall. Suggest how each of the risks could be handled by the organisation.i. Working from heights in a construction company. (3 marks)ii. The cashier might steal coins from the cash box to buy airtime. (3 marks)iii. A University catching fire and being burnt down. (3 marks)iv. People in the University neighbourhood will complain due to noise made by students during a fashion show at the university. (3 marks)v. Identify any four risks faced by an organisation when cleaners perform their duties. (4 marks.
Subject: HI6026 AUDIT, ASSURANCE AND COMPLIANCEQuestion: Explain the definition of the audit expectation gap? Then, discuss some approaches to reducing the expectation gap.
1) Define describe and explain the PDPM reimbursement system? 2) Define and describe how PDPM impacts nursing homes considered who is admitted ,how does this creat a opportunity or a threat to the facility and how does these impact the operations? 3) Identify the importance between PDPM and RUGs4
Please see the question and scenario.
Why may businesses be willing to incur the risk associated with BYOD?
Pat James, the purchasing agent for a local plant of the Oakden Electronics Division, was considering the possible purchase of a component from a new supplier. The component’s purchase price, $0.90, compared favorably with the standard price of $1.10. Given the quantity that would be purchased, Pat knew that the favorable price variance would help to offset an unfavorable variance for another component. By offsetting the unfavorable variance, his overall performance report would be impressive and good enough to help him qualify for the annual bonus. More importantly, a good performance rating this year would help him to secure a position at division headquarters at a significant salary increase. Purchase of the part, however, presented Pat with a dilemma. Consistent with his past behavior, Pat made inquiries regarding the reliability of the new supplier and the part’s quality. Reports were basically negative. The supplier had a reputation for making the first two or three deliveries on…
Pat James, the purchasing agent for a local plant of the Oakden Electronics Division, was considering the possible purchase of a component from a new supplier. The component’s purchase price, $0.90, compared favorably with the standard price of $1.10. Given the quantity that would be purchased, Pat knew that the favorable price variance would help to offset an unfavorable variance for another component. By offsetting the unfavorable variance, his overall performance report would be impressive and good enough to help him qualify for the annual bonus. More importantly, a good performance rating this year would help him to secure a position at division headquarters at a significant salary increase. Purchase of the part, however, presented Pat with a dilemma. Consistent with his past behavior, Pat made inquiries regarding the reliability of the new supplier and the part’s quality. Reports were basically negative. The supplier had a reputation for making the first two or three deliveries on…
Pat James, the purchasing agent for a local plant of the Oakden Electronics Division, was considering the possible purchase of a component from a new supplier. The component’s purchase price, $0.90, compared favorably with the standard price of $1.10. Given the quantity that would be purchased, Pat knew that the favorable price variance would help to offset an unfavorable variance for another component. By offsetting the unfavorable variance, his overall performance report would be impressive and good enough to help him qualify for the annual bonus. More importantly, a good performance rating this year would help him to secure a position at division headquarters at a significant salary increase. Purchase of the part, however, presented Pat with a dilemma. Consistent with his past behavior, Pat made inquiries regarding the reliability of the new supplier and the part’s quality. Reports were basically negative. The supplier had a reputation for making the first two or three deliveries on…

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS