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Suppose There Are Two Drivers,Jermaine and Janet

question 17

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Suppose there are two drivers,Jermaine and Janet.Jermaine is not a very safe driver.In fact,there is a 7.5% chance that he will have an accident within the next year.Janet is a relatively safe driver.Her chances of having an accident in the next year are only 1%.If Jermaine is involved in an accident,he will cost the insurance company $1,000,000.If Janet is involved in an accident,she will only cost the company $500,000.What is the expected pay-out that the company can expect from insuring these two?


Definitions:

Organizational Commitment

Refers to the psychological attachment employees feel towards their employer, often reflecting their willingness to remain with the organization.

Pipeline Positions

Key roles within an organization for which successors are prepared in advance.

Senior Management Team

A group of high-level executives responsible for making strategic decisions that dictate a company's direction and overall management.

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The process of forecasting an organization's future human resource needs and developing strategies to fulfill those needs.

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