An Automobile Insurance Company Estimates the Following Loss Probabilities for the Next

question 119

Essay

An automobile insurance company estimates the following loss probabilities for the next year on a $25,000sports car: $$\begin{array} { l r } \text { Total loss: } & 0.001 \\50 \% \text { loss: } & 0.01 \\25 \% \text { loss: } & 0.05 \\10 \% \text { loss: } & 0.10\end{array}$$ Assuming the company will sell only a $500 deductible policy for this model (i.e., the owner covers the first$500 damage), how much annual premium should the company charge in order to average $325 profit perpolicy sold?

Understand the role of operating system tools in managing multimedia devices.

Recognize the specifications and features vital for evaluating multimedia devices for specific tasks.

Apply knowledge of multimedia devices to solve practical problems.

Understand the factors influencing the performance of live multimedia sessions.

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Definitions:

Cost of Goods Manufactured

The total production cost of goods completed and moved to finished goods inventory within a specific period, including materials, labor, and overhead.

Factory Overhead

The indirect manufacturing costs that are not directly tied to the production of goods, such as maintenance, utilities, and salaries for support staff.

Depreciation

Depreciation is the accounting method of spreading out the cost of a tangible asset over its useful life, recognizing the asset's gradual loss of value over time.

Worker's Tools

Equipment and tools that are required and used by a worker to perform their job.