An insurer sells a one-year policy to people with the following loss distributions: Size of loss Probability of loss
11,000 0.05
30,000 0.01
10,000 0.02
5,000 0.05
0 0.915

Assume:

a. The fair premiums, the administrative expenses and the profit loading are all paid at the beginning of the year.
b. The claims are paid one year later; 3) The interest rate is 10%
c. The administrative expenses are assumed to be 10% of the expected claim cost
d. The profit loading is assumed to be 2% of the expected claim costs.

Required:
Find the fair premium for the policy.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; blank(1); /// whitelisting; blank(2); // blacklisting;

administrative jobs normally have someone answering phone calls and scheduling appointments, filing patient or customer information, making sure the front of the office looks nice to those who enter the building. administrative jobs can also include making sure the manager has everything they need for meetings, making delivers and much more. administrative jobs are important to most businesses as are customer service focused as they are often one of the first impressions a consumer sees of a business.