What would the community premium rate for this risk pool be if we also assume 10% loading costs for the insurer to cover its admin costs.

Q: Alexander Industries is considering purchasing an insurance policy for its new officebuilding in St.…

A: Given information is: Alexander Industries is considering purchasing an insurance policy for its new…

Q: Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to…

A: Hurwicz Criterion The Criterion of Hurwicz decision rule makes an effort to strike a balance between…

Q: Suppose you are risk averse with expected medical expenses of $900/per year. If a medical insurance…

A: Risk averse investors prefer to take less risk.  Medical insurance is an effective way to reduce…

Q: epartment of health is considering a public awareness campaign to encourage vaccination. It…

A: Benefit cost ratio is the ratio of the present value of all cost of the project and present value…

Q: Question 1 A hospital is considering purchasing a new medical dispensing cabinet that will cost…

A: A simple investment is investment where initial outflow is made and only one time sign is changed…

Q: ou are a policymaker and want to calculate the present value of the net benefit of the following…

A: Given information : Year Cash flows (Millions) 0  $                           (15.00) 1  $…

Q: Fulton National Hospital is reviewing ways of cutting the costs for stocking medical supplies. Two…

A: From the above Calculation it is visible that the Total cost under system Stockless Supply is…

Q: Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to…

A: The Hurwicz criterion: The Hurwicz criterion is a tool that aids decision-making under uncertainty.…

Q: A typical London cyclist might expect to earn £40k a year. This is reduced to £20k for one year…

A: London cyclists might expect to earn £40k a year. This is reduced to £20k for one year following a…

Q: Location A would require an investrment of $3.4 million and $55,000 per ycar to maintain. Location B…

A: Potential investments and chosen based on their benefits and costs. The investment option which…

Q: You have chosen biology as your college major because you would like to be a medical major. However,…

A: Calculate the expected salary as follows: expected starting salary = [Salary * Probability] expected…

Q: Your clinic is considering buying a two- module GeneXpert System from Cepheid for TB testing. The…

A: EAC is the annual cost of owning, operating, and maintaining an asset over its entire life.

Q: A privately run, for-profit, prison is considering ways in which it can cut its monthly costs and…

A: Calculate the Present value as follows:

Q: Sure Care Health Maintenance Organization is seeking a managed care contract with a local…

A: Profit or loss is the difference between revenue and expenses. Every organisation before doing any…

Q: A hospital just purchased upgraded software for the Electronic Medical Record surgical dashboard.…

A: Present value factor calculation = 1/(1+r) n  r is interest rate  n is time Or year

Q: What is the ICER?

A: ICER is called Incremental Cost-Effectiveness Ratio. The formula for calculating ICER is: ICER =…

Q: Williamsburg Nursing Home is investing in a restricted fund for a new assisted-living home that will…

A: Hospital WN needs to have $6,000,000 in 15 years. For this, it needs to invest some amount of money…

Q: You have discussed your retirement plans with your significant other and plan to move to a state…

A: According 4% rule you must do expenses of 4% retirement amount.

Q: You decide to go into the earthquake insurance business. You offer to pay $250,000 to any insured…

A: The premium of the policy would be the sum of the expected cost and the profit per policy. The…

Q: During 2020, Seth Britain Lab supplied hospitals with a comprehensive diagnostic kit for $120. At a…

A: The profit before tax represents the amount that has been earned by the company on which the a has…

Q: A county medical agency is considering two mutually exclusive options for treatment of a chronic…

A: Calculation of Incremental Benefit Cost Ratio  Particulars  Amount  Present Value Calculation…

Q: You are considering starting a walk-in clinic. Your financial projections for the first year of…

A: The project profit and loss statement presents the profit and loss the firm can expects from the…

Q: Lutheran Regional Hospital uses a planning process to define a new radiology service line. The…

A: Break even point = Fixed costs / Contribution margin per unit Contribution margin = Sales - variable…

Q: 12. During 2020, Thor Lab supplied hospitals with a comprehensive diagnostic kit for P1,200. At a…

A: The 2021 selling price can be calculated by first calculating the variable cost per unit for 2020…

Q: Norm and Tanya earn about the same salary and are undertaking a life insurance needs analysis for…

A: PV is the current worth of cash flows that are expected to happen in the future.

Q: Because Brooklynn has some health issues, she must pay 15% more for life insurance. About how much…

A: Insurance is a type of contract in which the insurance company promises to make the loss into good…

Q: Its top cardilac ne a large healthcare system has just approved a $355,000 surgeon. Assume that…

A: The formula that will be used in excel is the "PV" formula. The syntax is: PV (rate, nper, pmt) rate…

Q: tate department of health is considering a public awareness campaign to encourage vaccination. It…

A: Solution Formula for benefit cost ratio =present value or the benefit / present value of cost…

Q: A southwestern city that has 170,000 households is required to install treatment systems for the…

A: Benefit cost ratio one of the ratios which is used in capital budgeting. It is believed that if B/C…

Q: A not-for-profit hospital realizes a 3 percent return on its $200,000 investment in its home health…

A: Non-for-profit organizations are those organizations that do not make a profit for their members. A…

Q: Two healthcare companies, CSL and Pfizer try to invent the vaccine for the Covid-19 virus. They can…

A: The outcome of the game that depends on the selection pattern of the players is referred to as…

Q: Determining the Cost of Insurance. Suppose you are 45 and have a $50,000 face amount, 15-year,…

A: Face Value = $50,000 Annual Premium = $1,000 Cash value of the policy = $12,000 Time period = 15…

Q: ospital must decide whether or not to purchase new respirators. These respirators will help patients…

A: Step 1 The difference between the current value of cash inflows and withdrawals over a period of…

Q: Calculate the after-tax cost of debt for the Wallace Clinic, a for-profit healthcare provider,…

A: This question has two parts and in both parts we need to compute the after tax cost of debt given…

Q: If a life insurance company insures 50 females age 25 for $40,000, 10- year term policies, how much…

A: The annuity payment formula is used to calculate the periodic payment on an annuity. An annuity is a…

Q: A hospital just purchased upgraded software for the Electronic Medical Record surgical dashboard.…

A: NPV is the method under Capital budgeting which help in taking the decision of project feasibility…

Q: Provide the conclusions stated in sentences. Due to the effects of pandemic on the economical and…

A: Proposal -1: Receive P40,000 in 25 years Proposal - 2: Receive P3800 today  Interest rate is 10%…

Q: A privately run, for-profit, prison is considering ways in which it can cut its monthly costs and…

A: Therefore, the present value is $49,701.

Q: If a life insurance company insures 50 females age 25 for $40,000, 10- year term policies, how much…

A: The annuity payment formula is used to calculate the periodic payment on an annuity. An annuity is a…

Q: The hospital is considering the purchase of imaging equipment worth $25,000 to improve its visual…

A: GIVEN, INITIAL INVESTMENT = $25,000 ANNUAL SAVING = $7000 LIFE = 5  SALVAGE VALUE = $5000 R=8%

Q: Terrell is the insured under a $100,000 whole life insurance policy. Terrell's planner has…

A: Universal life insurance is type of a permanent life insurance. With it the insured person is…

Q: Below are the projected revenues and expenses for a new clinical nurse specialist program being…

A: Annual surplus= Annual revenue- Annual cost   Year Annual revenue Annual cost Annual suplus 0…

Q: Suppose a life insurance company sells a $250,000 one-year term life insurance policy to a…

A: Insurance  Insurance is a legal agreement between an insurance company (insurer) and a person…

Q: If the Potinsky household spends $49,600 annually on all living expenses and long-term debt,…

A: Emergency fund refers to the fund that is used during financial difficulties, or when an individual…

Q: 1. Due to the effects of pandemic on the economical and personal financial status, early investment…

A: Time value of money,  is a basic financial concept which states that the present value or worth of a…

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.