Q2. q = $1,000 I H = $5,000 I S ' = $150 How do you describe
Fantastic news! We've Found the answer you've been seeking!
Question:
Q2. q = $1,000 IH = $5,000 IS' = $150
How do you describe this insurance policy? A. full and fair insurance. B full and unfair insurance C partial and fair insurance D Not enough info. E partial insurance
Q3 Given partial insurance, A . IH' = IS' B. IH' >IS C IH >IS' D. triangle below the zero profit and full insurance intersection E. IH' >IS'
Q13 13. In addition to info in Question number 2,
assume r = $900 and p = 0.1 or 10%
What is the value of IS ? What is the expected profit of the insurance company?
$250; $800 | |
$50; $1,000 |
$50; $900 | |
$50; $800 |
none of the above |
14. How do you describe the insurance policy based on info from numbers 2 and 13?
full and fair | |
full and unfair |
partial and fair | |
partial and unfair |
Related Book For
Posted Date: