Suppose a group of individuals faces a 2% probability of suffering a $10,000 loss, and 8% probability

Fantastic news! We've Found the answer you've been seeking!

Question:

Suppose a group of individuals faces a 2% probability of suffering a $10,000 loss, and 8% probability of suffering a $1,000 loss, a 20% probability of suffering a $500 loss, and a 70% probability of no loss. Calculate the actuarially-fair premium.

Posted Date: May 19, 2024 10:11 PM

See More Questions

Because the entries in the present value table (Table 13 - 3) are reciprocals of the corresponding entries in the future value table (Table 13 - 1), how can Table 13 - 3 be used to find the future...
Using a global-positioning-system (GPS)-based navigator for your car, you enter a destination and the system will plot a route, give spoken turn-by-turn directions, and show your progress along the...
The compressive strength of concrete is being tested by a civil engineer who tests 12 specimens and obtains the following data: (a) Check the assumption that compressive strength is normally...
Explain how labor unions impact labor markets.
A company wants to set up a new office in a country where the corporate tax rate is as follows: 15% of first $50,000 profits, 25% of next $25,000, 34% of next $25,000, and 39% of everything over...
Bondi Bikes is requesting you to produce the following reports for July 2022 to June 2023: A report on the company's bike sales A report on the company's services provided A report on the company's...
Pacific Fishing Inc.'s actively traded non-strategic investments as of December 31, 2023, are as follows: Cost Fair Value Enviroclean common shares $17,800 $19,750 Northern Utilities common shares...
Common Stock ( $ 2 0 par value, 5 0 , 0 0 0 shares issued and outstanding ) Paid - in Capital in Excess of Par - Common Stock Retained Earnings On January 1 , 2 0 2 2 , Cullumber Company had the...
The following information is available to reconcile Branch Companys book balance of cash with its bank statement cash balance as of July 3 1 . a . On July 3 1 , the companys Cash account has a $ 2 5...
The Rim Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the averages for the industry. The CEO has given...
KC , a fast food restaurant, serves fried chicken, fried fish, and French fries. The managers have estimated the costs of a batch of fried chicken for KC ' s all - you - can - eat Friday Fried...
On April 1 5 , 2 0 2 4 , Concord Ltd . declared a 5 0 per share cash dividend, payable on May 3 1 to shareholders of record on May 1 . On the date of declaration, Concord Ltd . had 3 4 8 , 0 0 0...
One day, you discover a new phenotype in one of your litters of baby rate siblings were born with purple eyes, You think that the baby rates may have been born with a mutant allele, and decide to...
What is the amount of total interest dollars earned on a $5,000 deposit earning 6% for 20 years?
Assume Paterson Company reports sales of $$500,000,$ cost of goods sold (based on standard costs) of $$460,000$ for 2019. However, during the year the company also reports the following...
D'Adduzio Company planned to produce 11,000 units of finished product during the current month. The com- pany was able to achieve this desired level of production. During the month, D'Adduzio...
Environmental Business Consultants. Inc. (EBC) has hired several new staff members in the last year and has invested considerable effort in training these new employees in the EBC approach to...

Suppose a group of individuals faces a 2% probability of suffering a $10,000 loss, and 8% probability

Question:

Expert Answer:

Students also viewed these mathematics questions