subject
Business, 17.12.2019 02:31 andykuzy5447

Global gas international offers to subcontract the halidurton heavy construction corporation to build an oil pipeline from canada to new orleans for $500 million. the probability that the oil pipeline will leak causing environmental damage is θ. if so, the legal liabilities will be $600 million.

a. if halidurton is risk neutral and liable for the damages from a leak, what is the θ such that it is indifferent between accepting or rejecting the contract?

b. if halidurton is risk averse and fair insurance is offered, how much insurance would it buy?

c. if global gas international will partially indemnify halidurton so that the largest damages that halidurton would have to pay is $200 million, what is the θ that leaves it indifferent about accepting the contract?

d. if partially indemnified, how much fair insurance will halidurton buy?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 16:10
Acustomer has come to your department with an urgent question. you promised her that you would collect information about her question and answer it by noon. it will take you at least 20 minutes to gather the information needed to provide an answer. it is now 11: 50 a.m. your supervisor just scheduled a 30-minute meeting to start at noon. this meeting is for all employees in your department. you decide to:
Answers: 2
question
Business, 22.06.2019 13:50
Classify each of the following items as a public good, a private good, a natural monopoly good, or a common resource.(a) measles vaccinations (b) tuna in the pacific ocean (c) airline service in the united states (d) local storm-water system
Answers: 1
question
Business, 22.06.2019 17:20
Andy owns islander surfboard inc. in the past, andy has always given his employees bonuses during the holidays if they reached certain sales goals. this year, even though the company is thriving, he decided to cut bonuses from employees and award them to himself instead. what ethical theory of leadership is andy following?
Answers: 1
question
Business, 22.06.2019 18:10
Ashop owner uses a reorder point approach to restocking a certain raw material. lead time is six days. usage of the material during lead time is normally distributed with a mean of 42 pounds and a standard deviation of four pounds. when should the raw material be reordered if the acceptable risk of a stockout is 3 percent?
Answers: 1
You know the right answer?
Global gas international offers to subcontract the halidurton heavy construction corporation to buil...
Questions
question
Chemistry, 02.07.2019 19:00
question
Mathematics, 02.07.2019 19:00
question
Chemistry, 02.07.2019 19:00
question
Mathematics, 02.07.2019 19:00
question
Mathematics, 02.07.2019 19:00
Questions on the website: 13722363