Question

Indicate whether the statement is true or false, and justify your answer.
In an actuarially fair insurance contract, the insurance premium equals the probability of sickness times the payout amount.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Economics

Microeconomics

Related Economics Q&A

Find answers to questions asked by students like you.

Q: Do you think that there is strong relationship among health, labor productivity and income levels? E...

A:   Health is an important factor that determines the ability to work by a person in the economy. When...

Q: Vanessa Denai owned forty acres of land in rural Louisiana. On the property were a 1,600-square-foot...

A: Hello, Thank you for the question. Since there is multiple subpart question posted here, only the fi...

Q: Federally funded student aid programs generally reduce benefits by $1 for every $1 that recipients e...

A: When the economy is slow down, an automatic stabilizer tries to offset fluctuations in a nation’s ec...

Q: Your textbook discusses the benefits of cheaper imports on pages 171-173. Draw a graph that shows th...

A:   Before trade After trade Change   Consumer surplus A A + B + D + ( B + D) Gain...

Q: kindly solve question no. 2 thanks

A: Contribution to GDP is the final added value. It is the monetary value of final added goods and serv...

Q: Consider the following simultaneous move game where player 1 has two types. Player 2 does not know i...

A: In this case, from player 2’s point of view, player 1 has two types- a or b with the probability of ...

Q: Use the graph below to explain the output, profit and loss conditions for monopolistically competiti...

A: Monopolistic competition is a type of market in which there are many firms who produces differentiat...

Q: 1. Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this accoun...

A: Hey, thank you for the question. Since there are multiple questions posted, we will answer first que...

Q: Many automobile manufacturers are finding that the costs of batteries used in making electric cars a...

A: When the automobiles manufacturers are finding that the future battery costs would become less expen...