User Account

All Pages

What premium should the insurance company charge each year

Assignment Help Microeconomics
Reference no: EM13319718

A private pilot wishes to insure his airplane for $200,000. The insurance company estimates that a total loss may occur with probability 0.002, a 50% loss with probability 0.01, and a 25% loss with probability 0.1. Ignoring all other partial losses, what premium should the insurance company charge each year to realize an average profit of $500?

Reference no: EM13319718

Questions Cloud

Calculate tina loan request and the effective rate : Tina Mier must pay a $2,000 furniture bill. A finance company will loan Tina $2,000 for 8 months at a 9% discount rate. The finance company told Tina that if she wants to receive exactly $2,000, she must borrow more than $2,000. The finance company g..
Explain concentrated naoh but not in concentrated nh3 : Why does aluminum hydroxide readily dissolve in concentrated NaOH but not in concentrated NH3. Please give a thorough explanation, not just a short answer.
Determine the intensity of the light : Randomly polarized light of intensity I0 is passed through two polarizers whose transmission axes differ by 45 degrees. What is the intensity of the light
A coin is biased so that a bead is three times as likely to : A coin is biased so that a bead is three times as likely to occur as a tail. Find the expected number of tails when this coin is tossed twice.
What premium should the insurance company charge each year : A private pilot wishes to insure his airplane for $200,000. The insurance company estimates that a total loss may occur with probability 0.002, a 50% loss with probability 0.01, and a 25% loss with probability
What intensity is transmitted : plane polarized light of intensity I0 is passed through two polarizers, the first one at 45 degrees to the original plane of polarization, what intensity is transmitted
Review of medical error : Review of Medical Error
Compute the number of moles of naoh in the solution : Calculate the number of moles of NaOH in the Solution. 0.0395 moles Calculate the value (calories) for the heat of solution. -343 cal Calculate the ?Hsolution for sodium hydroxide
Why does a reduction in aggregate demand reduce real output : Explain: “Unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply.” In each case, specify the price-level outcomes.

Reviews

Write a Review

Microeconomics Questions & Answers

  The economic term for productive resources

What is the economic term for productive resources that provide a means for society to produce and distribute its goods.

  What managers can do to prepare for the possible change

From the e-Activity, determine the environmental variable most likely to affect the short-run production over the next 12 months. Determine what managers can do to prepare for the possible change in short-run production.

  Calculate marginal cost and marginal revenue

Calculate marginal cost and marginal revenue for each level of output when market price and what is the firm's profit-maximizing level of output

  Highly inelastic price elasticity of supply

Name three goods or services with highly elastic price elasticity of supply. Name three goods or services with highly inelastic price elasticity of supply.

  Explain what is wholesale price

Given this is a monopoly with an expiring patent in 30 days, what price and quantity will result once the competition emerges in this market.

  Improve access to medical care

improve life style decsisions by reducing smoking, alcohol consumption, and drug use, imporve overall educational attainment so people can better follow the advice from the medical community.

  Determining short run supply function

Derive the firm's supply curve, expressing quantity as a function of price. Derive the market supply curve if the company is one of 200 competitors. Compute market supply per week at a market price of $25 per rack delivered and serviced.

  Price elasticity of demand

Suppose you are the manager of a small pharmaceutical firm that received a patent on a new drug 3-years before. Despite strong sales and a low marginal cost of manufacturing the product

  Full amount withdrawn is treated as income and is taxed at

Individual retirement accounts, or IRAs, were established by the U.S. government to encourage saving. An individual who deposits part of current earnings in an IRA does not have to pay income taxes on the earnings deposited, nor are any income taxes ..

  Give one reason for rising interest rates

one reason for rising interest rates was the prospect of a refinancing issu; a $12 billion issue matures April 1 , and the governmoent is expected to seek some new money ,in excess of its refinancing needs. why dosent the government get the cente..

  The earnings of engineers doctors and lawyers are high

The earnings of engineers, doctors, and lawyers are high because lots of education is necessary to practice in these fields

  Determining change in equilibrium output

Assume the economy starts at equilibrium and the mpc=.8. What would be the effect of the $500 increase in taxes (once all the rounds of the mulyiplier process are complete) in relation to equilibrium output?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd