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A property-causality insurer brings in $6.45. million to premiums on its homeowner's multiple line of insurance. The line's losses amount to $4,267,000, expenses are $1,347,250, and dividends are $410,000. The insurer earns $495,000 in the investment of its premiums. Calculate the line's loss ratio, expense ratio, dividend ratio, combined ratio, investment ratios, operating ratios, and overall profitability.
The pre-subsidy price of Humbugs was $50. There are no additional social benefits to encouraging the consumption of Humbugs.
Suppose that the income elasticity of demand for peanut butter is 0.75. Which of the following is true? If the prices of computer tablets rise, we would expect the number of tablet covers purchased to: The income elasticity of demand
You are analyzing data for a research project. You have a two-sided two-sample t-test with the following hypotheses being tested: Which of the following results for the confidence interval does not provide enough evidence to reject the null hypothesi..
A U.S government bond matures in 10 years. It's quoted price is now 96.4, which means the buyer will pay $96.40 per $100 of the bond's face value. The bond pays 5% interest on its face value each year. If $10,000 (the face value) worth of these bonds..
Are there two possibilities for Starbucks to increase their brand loyalty for its product? And how can those possibilities help Starbucks to maintain
Illustrate diagrammatically the set of allocations that are Pareto preferred to the initial allocation.
In the class, we have discussed a set up of the Cournot competition with two firms and different marginal production costs.
What other variables should be considered when determining what is reasonable in terms of maintenance expense
In this module, it is demonstrated that sometimes extensive diseconomies of scale, say, due to high transportation costs, would require that the firm produce its product in a multiple of plants. Suppose a beer brewing company has determined that i..
The Circular Flow Model with Government is another important model for students to understand. Please explain what the model shows us. List and explain the assumptions of the model. i. There are 3 assumptions of the Circular Flow Model with Governmen..
If a painter tells you that he would spend $30 on a respirator (but not $31) that protects him from paint fumes that produce a 0.01% chance of killing him? How much cash value would you say that he places on his life?
Discuss the concept of competitive advantage and how important it is to a small business. Identify and describe some competitive advantages a small business can build. One dictionary defines "sustainable" as “to keep up or keep going and an action or..
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