Question 2
q = $1,000
IH = $5,000
IS’ = $150
How do you describe this insurance policy?
| full and fair insurance |
|
full and unfair insurance |
|
partial and fair insurance |
|
not enough information to determine |
| partial insurance |
13. In addition to info in Question number 2
assume r = $900 and p = 0.1 or 10%
What is the value of IS ? What is the expected profitof the insurance company?
|
$250; $800 |
|
|
$50; $1,000 |
|
$50; $900 |
|
|
$50; $800 |
|
none of the above |
14. How do you describe the insurance policy based on info fromnumber 13?
|
full and fair |
|
|
full and OR
PayPal Gateway not configured OR
PayPal Gateway not configured |