What would happen to premiums of houses

Reference no: EM13190335

Why does the assumption of independence of risks matter in the examples of insurance? What would happen to premiums if the probabilities of houses burning were positively correlated? Can you think of a situation where they might be negatively correlated?

Reference no: EM13190335

Questions Cloud

Why is adding and subtracting polynomials so different : In your own words, explain the process of multiplying and dividing polynomial. How are they similar? Why is adding and subtracting polynomials so different?

Federal government expanded activities between 1877-1930 : Identify and analyze three ways in which the federal government expanded its activities between 1877 and 1930, considering both the factors that prompted the expansion and the consequences of the expansion.

Identify the business problems the project team : Identify the business problems the project team tried to solve and analyze how they applied the agile project management techniques to ensure the project was delivered on time, on budget with good quality.

Find the depth of the pool : The length of a swimming pool is 22 ft. The width is 40 ft. If the volume of the pool is 2,500 ft³, which equation below could be used to find the depth of the pool?

What would happen to premiums of houses : Why does the assumption of independence of risks matter in the examples of insurance What would happen to premiums if the probabilities of houses burning were positively correlated Can you think of a situation where they might be negatively corr..

Determine the minimum furnace output : the formulab=32a is used New England, to estimate the minimum furnace output,b, in BTU's for a modern house with a square feet of flooring. Determine the minimum furnace output for a 2100ft 2 modern house.

Explain what affect would an increased concentration : What affect would an increased concentration of 2,3-BPG have on the oxygen-binding curve for hemoglobin. Why would this adaptation be beneficial for functioning well at high altitude?

What rate of interest will it need to pay off : Oakwood Plowing Company purchased two new plows for the upcoming winter. In 210 days, Oakwood must make a single payment of $25,170 to pay for the plows. As of today, Oakwood has $24,400.

Explain the pka of a glutamic acid side change : Tuning proton affinity. The pKa of an acid depends part,y on its environment. Predict the effect of each of the following environmental changes on the pKa of a glutamic acid side change.

User Account

All Pages