Business, 11.02.2021 20:40 angelinagiraffp538zb

Calculate the coefficient of variation of the following distributions and identify which distribution has the greatest risk. Distribution 1 Distribution 2 Distribution 3
Outcome Prob Outcome Prob Outcome Prob
$100 0.10 $100 0.20 $0 0.30
$400 0.20 $500 0.30 $200 0.10
$800 0.70 $600 0.50 $1000 0.60

Required:
a. Assume that a loss history is normally distributed with a mean of $5,000 and a standard deviation of $1,500. Whatâs the probability that the next loss will be greater than $5,750?
b. If the risk manager is willing to tolerate 2% chance that costs will be greater than the maximum probable loss, what is the maximum probable loss level?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 18:50

You are the manager of a firm that produces output in two plants. the demand for your firm's product is p = 20 − q, where q = q1 + q2. the marginal costs associated with producing in the two plants are mc1 = 2 and mc2 = 2q2. how much output should be produced in plant 1 in order to maximize profits?

Answers: 3

Answer

Business, 21.06.2019 20:30

The distinction between a normal and an inferior good is

Answers: 3

Answer

Business, 22.06.2019 00:50

Suppose that: 1. malaysia requires 1 hour of labor to produce 1 pound of rice and 2 hours of labor to produce 1 pencil; 2. indonesia requires 2 hours of labor to produce 1 pound of rice and 4 hours of labor to produce 1 pencil; 3. each country has 10,000 hours of labor to allocate between the production of rice and pencils; and 4. in autarky, malaysia consumes 5,000 pounds of rice and 2,500 pencils. which country has an absolute advantage in rice production? in pencil production? which country has a comparative advantage in rice production? in pencil production? will trade between the two countries be mutually beneficial?

Answers: 1

Answer

Business, 22.06.2019 18:30

Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?

Answers: 1

Answer

You know the right answer?

Calculate the coefficient of variation of the following distributions and identify which distributio...

Questions