Estimates Should Be Based on Normal Conditions, Efficient Methods, and a Normal

question 6

Essay

Estimates should be based on normal conditions, efficient methods, and a normal level of resources. Explain.

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Definitions:

Equilibrium

An equilibrium state in the market where demand equals supply, resulting in steady prices.

Independent Events

In probability theory, events that do not affect the occurrence of one another.

Insurance Premiums

Payments made to an insurance company in exchange for coverage, typically paid on a monthly or annual basis.

Demand Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to purchase at various prices.