ful wishes to adjust their rates for next year, they calculate that the expected loss ratio is 0.8, while the data shows that the loss adjustment expenses is 566 and the total premium earning is 990. The company's current ratei s 77. Using the experience rating method what will the new primum be if the credibility factor is 0.6

ful wishes to adjust their rates for next year, they calculate that the expected loss ratio is 0.8, while the data shows that the loss adjustment expenses is 566 and the total premium earning is 990. The company's current ratei s 77. Using the experience rating method what will the new primum be if the credibility factor is 0.6

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter14: Valuation: Market-based Approach

Section: Chapter Questions

Problem 1FIC

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Takaful wishes to adjust their rates for next year, they calculate that the expected loss ratio is 0.77, while the data shows that the loss adjustment expenses is 466 and the total premium earning is 1,053. The company's current rates 65. Using the experience rating method what will the new primum be if the credibility factor is 0.32
Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018 - P792,000. Cost of sales = 2019 - 480,000; 2018 - 464,000. Gross profit = 2019 - P330,000; 2018 - P328,000. Sales price was 10% lower during 2019. The percent of increase (decrease) in cost price must be: The owners would like to know what reasons caused the current performance of the company and ask your opinion. Through review of the complete records you were able to obtain this additional information: (1) The selling price for every unit is P7.20 during 2018 and; (2) The marketing department did a tremendous job and was able to increase sales units by 20% during 2019. The increase (decrease) in gross profit because of the change in sales price is: a. P900 b. P1,080 c. (P4,320) d. P15,480
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