Friday

March 27, 2015

March 27, 2015

Posted by **Stuart** on Monday, February 16, 2009 at 3:57pm.

The River

Does not flood Floods

Insurance No flood

Decision Insurance $200,000 -$1,000,000

Get flood Insurance $190,000 $200,000

a) If Laura decides not to purchase flood insurance, use the approach discrete probability

distribution to determine Riverside's expected profit next year.

b) If Laura purchases the flood insurance, what will be Riverside's expected profit next year?

c) Given the results in parts (a) and (b), provide Laura with a recommendation

- Statistics -
**economyst**, Tuesday, February 17, 2009 at 8:55amAs I understand it, the four possibilities flood/no-flood combined with buy/not-buy

That said, I am at a loss trying to understand profit outcomes.

However, just compare the expected values of profits under two scenario: 1) she buys, and 2) she doesnt buy.

Under 1) she buys, her expected value is .01*(profit with flood - premium) + .99*(profit no flood - premium)

take it from here.

- Statistics -
**Jacquelym**, Monday, July 20, 2009 at 3:33pmAn investment counselor would like to meet with 12 of his clients on Monday, but he has time for only 8 appointments. How many different combinations of the clients could be considered for inclusion into his limited schedule for that day?

**Answer this Question**

**Related Questions**

Statistics - ) Laura McCarthy, the owner of Riverside Bakery, has been ...

statistics - According to the book Are yoy Normal?, 40% of all US adults try to ...

economics - (Insurance) Let X = R+. Consider a house owner whose house has a ...

statistics - Assume that about 45% of all U.S. adults try to pad their insurance...

statistics - According to the book Are you Normal?,40% of all US adults try to ...

Statistics - Assume that about 45% of all U.S. adults try to pad their insurance...

Statistics - Assume that about 45% of all U.S. adults try to pad their insurance...

Statistics - Assume that about 45% of all U.S. adults try to pad their ...

Statistics - Assume that about 45% of all U.S. adults try to pad their insurance...

Statistics - Assume that about 45% of all U.S. adults try to pad their insurance...