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A1 Inc. has $1 million in assets at a job site and, applying a risk transfer approach, wishes to address risk by taking out an insurance policy. The insurance carrier provided its statistical data in the table below. Based on that data and assuming an agreed upon $450 fee for handling and profit for the carrier, what should A1 consider a fair price for the insurance policy?
Equipment Value $ 1,000,000 Type Damage Probability (%) Extent of Loss (%) Total 0.02% 100% Medium 0.08% 40% Low 0.10% 20% No Damage 99.80% 0%
Your company, ABC Company, uses 100% inspection for all materials and requires zero defect quality of all its vendors. If bad parts are found, it cost $1.00 per part to inspect the
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What capability would an organization have to have to not need forecasts?
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