An insurance market consists of high-risk patients, who average $40,000 in spending per year, and low-risk...
An insurance market consists of high-risk patients, who average $40,000 in spending per year, and low-risk patients, who average $1,000 per year. Overall, low-risk patients represent 90 percent of the population. What would average spending be for a population like this?
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An insurance market consists of high-risk patients, who average
$40,000 in spending per year, and low-risk...
#6. A car insurance company has high-risk, medium-risk, and low-risk clients, who have, respectively, probabilities.04,.02, and.01...
#6. A car insurance company has high-risk, medium-risk, and low-risk clients, who have, respectively, probabilities.04,.02, and.01 of filing claims within a given year. The proportions of the numbers of clients in the three categories are .15, .25, and.60, respectively (a) What is the probability that a random client doesn't file a claim? (b) What proportion of the claims filed each year come from high-risk clients? (c) What is the probability that a random client who didn't file a claim is...
A. If a population has two kinds, high and low. risk. Let the expected annual health...
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Suppose the population consists of only high-ability workers (who make up 80% of the population) and...
Suppose the population consists of only high-ability workers (who make up 80% of the population) and low-ability workers (who make up 20% of the population). The present value of a high-ability worker’s lifetime productivity is $600,000, while the present value of a low-ability worker’s lifetime productivity is $400,000. Suppose the costs of education for high-type workers are $20,000/year, while the costs of education for low-type workers are $30,000/year. Firms would like to separate the two types of workers, and will...
A stock that has a high beta typically has a. high market or asset price risk....
A stock that has a high beta typically has a. high market or asset price risk. b. zero market or asset price risk. c. low market or asset price risk. d. returns that match those of bonds. e. high yield to maturity. Because stocks have ________ asset price risk or volatility relative to bonds, their long-term average rate of return tends to be _________ relative to bonds. a. greater; higher b. greater; lower c. less; higher d. less; lower e....
Ron Carr 7.Ron Car is an income investor who has a relatively low risk tolerance. He...
Ron Carr 7.Ron Car is an income investor who has a relatively low risk tolerance. He is considering the purchase of a $1,000 face value bond with the following characteristics: •Coupon: 4 percent •Coupon payments per year: one •Maturity: five years •Current market interest rate: 8 percent •Yield to maturity: 8 percent a.What is the bond’s current price? b.What is the bond’s modified duration? c.Based on your answer to the previous question, what will happen to the value of the...
7. In an insurance market there are three indistinguishable types of potential clients: of low medium...
7. In an insurance market there are three indistinguishable types of potential clients: of low medium and high risk. Each of these groups is composed of 1000 persons. The probability of an accident (loss) in each of these groups amounts to 1%, 2%, and30-respectively. If a loss occurs, the resulting damage is 100004근ety. The maximum amount that a client from a given group will pay for insurance is 1500 zloty, 2900 zloty, and 3500 zloty respectively. What average (i.e. expected)...
The average yearly Medicare Hospital Insurance benefit per person was $4064 in a recent year. If...
The average yearly Medicare Hospital Insurance benefit per person was $4064 in a recent year. If the benefits are normally distributed with a standard deviation of $460, find the probability that the mean benefit for a random sample of 20 patients is more than $4100. According to the U.S.Census, 67.5% of the U.S. population were born in their state of residence. In a random sample of 200 Americans, what is the probability that fewer than 125 were born in their...
An insurance company processes 800 claims per year. The average processing time for a claim is...
An insurance company processes 800 claims per year. The average processing time for a claim is 5 weeks. 45 percent of all claims received are car insurance claims, 40 percent of all claims received are motorcycle insurance claims, 10 percent are boat insurance claims, and the remaining are house insurance claims. Hint: These are throughput values. On average there are, 20 car, 9 motorcycles, 12 boats, and some house claims in process. Hint: These are inventory values. Assume 50 weeks...
Nationally, patients who go to the emergency room wait an average of 6 hours to be...
Nationally, patients who go to the emergency room wait an average of 6 hours to be admitted into the hospital. Do patients at rural hospitals have a lower waiting time? The 14 randomly selected patients who went to the emergency room at rural hospitals waited an average of 4.6 hours to be admitted into the hospital. The standard deviation for these 14 patients was 2.4 hours. What can be concluded at the the a = 0.05 level of significance level...
Marion Health Clinic sees patients on a walk-in basis only. On average, 10 patients per hour...
Marion Health Clinic sees patients on a walk-in basis only. On average, 10 patients per hour enter the clinic. All patients register at the registration window with a registration clerk (RC), which takes 4 minutes. After registration, but before being seen by a nurse practitioner (NP), the registration records clerk (RRC) pulls the patient's records from the records room, which takes 6 minutes. At his or her turn, each patient then sees an NP, who checks weight, temperature, and blood...
#6. A car insurance company has high-risk, medium-risk, and low-risk clients, who have, respectively, probabilities.04,.02, and.01 of filing claims within a given year. The proportions of the numbers of clients in the three categories are .15, .25, and.60, respectively (a) What is the probability that a random client doesn't file a claim? (b) What proportion of the claims filed each year come from high-risk clients? (c) What is the probability that a random client who didn't file a claim is...
7. In an insurance market there are three indistinguishable types of potential clients: of low medium and high risk. Each of these groups is composed of 1000 persons. The probability of an accident (loss) in each of these groups amounts to 1%, 2%, and30-respectively. If a loss occurs, the resulting damage is 100004근ety. The maximum amount that a client from a given group will pay for insurance is 1500 zloty, 2900 zloty, and 3500 zloty respectively. What average (i.e. expected)...
The average yearly Medicare Hospital Insurance benefit per person was $4064 in a recent year. If the benefits are normally distributed with a standard deviation of $460, find the probability that the mean benefit for a random sample of 20 patients is more than $4100. According to the U.S.Census, 67.5% of the U.S. population were born in their state of residence. In a random sample of 200 Americans, what is the probability that fewer than 125 were born in their...
Nationally, patients who go to the emergency room wait an average of 6 hours to be admitted into the hospital. Do patients at rural hospitals have a lower waiting time? The 14 randomly selected patients who went to the emergency room at rural hospitals waited an average of 4.6 hours to be admitted into the hospital. The standard deviation for these 14 patients was 2.4 hours. What can be concluded at the the a = 0.05 level of significance level...
Marion Health Clinic sees patients on a walk-in basis only. On average, 10 patients per hour enter the clinic. All patients register at the registration window with a registration clerk (RC), which takes 4 minutes. After registration, but before being seen by a nurse practitioner (NP), the registration records clerk (RRC) pulls the patient's records from the records room, which takes 6 minutes. At his or her turn, each patient then sees an NP, who checks weight, temperature, and blood...
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