An insurance company classifies its customers into 3 categories: below average, average, and above average. No one moves more than one state at a time.
For example, a customer cannot move from below average to above average or from above average to below average in a given period. After a given period, we notice that:
Given the above:
An insurance company classifies its customers into 3 categories: below average, average, and above average. No...
An insurance company classifies its customers into three categories: 1. Good Risk 2. Acceptable Risk 3. Bad Risk Customers independently transition between categories at the end of each year according to a Markov process with the following transition matrix: P = 0.6 0.3 0.1 0.5 0.0 0.5 0.4 0.4 0.2 Find the long-run proportion of time in Good Risk, and the expected number of steps needed to return to Good Risk.
QUESTION 4: An insurance company offers a health plan to guard against the financial consequences of a person becoming permanently disabled. For the purpose of this plan the company classifies the health status of its members as being either healthy (state 1), ill (state 2), permanently disabled state 3) or dead (state 4). Only those members who are in either state 1 or state 2 pay into this health plan while only those who are in state 3 receive payments...
A health insurance company knows that there are two types of customers (smokers and non-smokers), each facing different health risks. The probabilities of getting sick and the healthcare costs in the case of illness for the two customer types is given in the table below. Group Healthcare costs Probability of getting sick Smokers $1200 50% Non-smokers $1200 20% Assume that each customer has a monthly income of $1600 and has a utility function given by U(x)=sqrt(x), where x is the...
1. Consider the two processes shown below. Which one will have
on average the higher total production outcome (i.e., total number
of products produced in a given time period)?
Process A
Process B
On average, they will have the same total production
outcome.
2. What happens in Process B above if the buffer size increases
from 2 to 10?
Throughput time increases
Throughput time decreases
Starving increases
Throughput rate decreases
Nothing changes 3. Chef Chati works at the kitchen of...
Assist ne please
Question 3 NAME: The circuit shown below contains two switches which open and close perfectly out of phase with one another (only one is open at any given time, and once one closes the other immediately opens, and vice-versa). The switches alternate at a frequency of 10kHz, and each switch spends 50% of the time open and 50% of the time closed (ie, each switch is open for 100 microseconds and then closed for 100 microseconds). The...
A manager has projected demand for the next six months (below). Given this information, prepare a LEVEL aggregate plan for production. Assume maximum regular time production is 350 units per month. Overtime is limited to 75 units per month. The limit for subcontracting is 400 per month. The company has a zero beginning inventory and cannot have ending inventory or a backlog at the end of the 6th period. Unit costs are as noted below. Regular Time Cost: $10/unit Overtime...
summarize this article below The conventional wisdom throughout retail-industry circles is that it costs significantly more to acquire new customers than to retain old ones. In fact, among financial-services companies, there is reliable evidence that it costs five times more to acquire a new customer than to retain an existing one. (1) Perhaps this emphasis on the value of existing customers has been partially a response to (or even justification for) the intensive focus financial institutions have placed on customer...
Costco launched the warehouse shopping model when it opened its
first location in
1976, requiring customers to purchase an annual membership in order
to shop at the
store.68 The first location was called Price Club and initially
sold only to small businesses.
More than 40 years later, Costco is one of the nation’s top
retailers and the nation’s
largest membership warehouse chain. They operate more than 700
warehouses located
around the world, with more than 80 million members and over...
Examples 1,2,3
1. Beyond Tea Inc. wants to forecast sales of its menthol green
tea. The company is considering either using a simple mean or a
three-period moving average to forecast monthly sales. Given sales
data for the past 10 months use both forecasting methods to
forecast periods 7 to 10 and then evaluate each. Which method
should they use? Use the selected method to make a forecast for
month 11. (Show all calculations .... Please read Examples1, 2, 3...
Required information (The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing...