Contemporary Mathematics For Business & Consumers, Loose-leaf Version
8th Edition
ISBN: 9781305867185
Author: Robert Brechner, Geroge Bergeman
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
thumb_up100%
Chapter 19.II, Problem 24RE
BUSINESS DECISION: BUSINESS INTERRUPTION INSURANCE
As the owner of a successful business, you have just purchased an additional type of properly insurance coverage known as business interruption insurance. This insurance protects the profits that a company would have earned had there been no problem. Business interruption insurance covers damages caused by all types of perils, such as fires, tornadoes, hurricanes, lightning, or any other disaster except floods and earthquakes.
This insurance pays for “economic" losses incurred when business operations suddenly cease. These include loss of income due to the interruption and additional expenses (e.g., leases; relocation to temporary facilities; overtime to keep up with production demands; recompiling of business, financial, and legal records; and even the salaries of key employees).
Your coverage provides insurance reimbursement for
a. If you have purchased coverage amounting to $20,000 per month, what is the amount of your annual premium?
b. If a tornado put your company out of business for
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Franchise and Business Opportunities Annual Report contains information about franchise opportunities in the United
States and Canada. A franchise fee is one of the expenses associated with owning a franchise. There are other expenses,
such as startup, advertising, royalties, and so on. A large category of franchises is the fast-food businesss, which includes
franchises such as baked goods, donuts, and hamburgers, chicken, and hotdogs. Franchise fees (in thousands of dollars)
for the fast-food category are as follows:
21 25 25 18 44 20 25 15 19 24 1o
28 30 25 25 25 25 10 25 25 20 20.
20 15 10 20 25 25 13 30 15 28 15.
15 35 24 40 15 20 35 5 50 30 15
25 40 15 25 1575 33 23 30 10 15
8.25 10 8 20 25 20 30
FOR UNGROUPED DATA (USE 2 DECIMAL PLACES)
MEAN =
MEDIAN =
MODE =
KURTOSIS =
SKEWNESS =
CV =
FOR GROUPED DATA (USE 2 DECIMAL PLACES)
MEAN =
CS Scanned with CamScanner
adapted from Safe and Healthy Travel to a Mass GatheringCenters for Disease Control and Prevention
International events draw huge crowds and come with unique risks to travelers. Whether they are planned years in advance, such as the Olympics, or happen more spontaneously, such as a president's memorial service, mass gatherings present several problems. They are associated with crowding at venues, poor hygiene from temporary food and sanitation facilities, and challenging security situations. The risk of infectious diseases increases because of crowded conditions and the influx of attendees from around the world. A mass gathering can be thought of as any gathering of people that is large enough to strain local resources. Typically, they involve a large number of people—sometimes numbering in the millions—at a specific location, for a specific purpose, and for a defined time frame.
16
Select the correct location on the image.
Which flash card correctly explains…
I need some help with sections D, E, and F please
Chapter 19 Solutions
Contemporary Mathematics For Business & Consumers, Loose-leaf Version
Ch. 19.I - Prob. 1TIECh. 19.I - Prob. 2TIECh. 19.I - Prob. 3TIECh. 19.I - Calculate the annual, semiannual, quarterly, and...Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Prob. 3RECh. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Prob. 5RECh. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Calculate the annual. semiannual, quarterly, and...
Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Prob. 9RECh. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Prob. 11RECh. 19.I - Prob. 12RECh. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Leroy Kirk is 35 years old and is interested in...Ch. 19.I - 16. Rene Boyer, age 27. wants to purchase a 5-year...Ch. 19.I - Carmen Gutierrez purchased a $75,000, 20-payment...Ch. 19.I - 18. Alex Baron is evaluating his life insurance...Ch. 19.I - Richard Ryan is evaluating his life insurance...Ch. 19.I - BUSINESS DECISION: THE CONSULTATION
20. Tina...Ch. 19.II - You are the insurance agent for Diamond...Ch. 19.II - Prob. 5TIECh. 19.II - Prob. 6TIECh. 19.II - Prob. 7TIECh. 19.II - Prob. 8TIECh. 19.II - Prob. 1RECh. 19.II - Prob. 2RECh. 19.II - Prob. 3RECh. 19.II - Calculate the building, contents, and total...Ch. 19.II - Prob. 5RECh. 19.II - Prob. 6RECh. 19.II - Prob. 7RECh. 19.II - Prob. 8RECh. 19.II - Prob. 9RECh. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Prob. 13RECh. 19.II - Prob. 14RECh. 19.II - Prob. 15RECh. 19.II - Calculate the amount to be paid by the insurance...Ch. 19.II - Prob. 17RECh. 19.II - Calculate the amount to be paid by the insurance...Ch. 19.II - Prob. 19RECh. 19.II - You are the insurance agent for Castle Mountain...Ch. 19.II - A property insurance policy has an annual premium...Ch. 19.II - 22. Insignia Enterprises has a property insurance...Ch. 19.II - Prob. 23RECh. 19.II - BUSINESS DECISION: BUSINESS INTERRUPTION INSURANCE...Ch. 19.III - Jeff Wasserman, owner of High Performance Racing...Ch. 19.III - Prob. 10TIECh. 19.III - Prob. 1RECh. 19.III - Prob. 2RECh. 19.III - Prob. 3RECh. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - Prob. 5RECh. 19.III - Prob. 6RECh. 19.III - Prob. 7RECh. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - 9. Rick Clinton wants to purchase an automobile...Ch. 19.III -
10. Howard Marshall’s Corvette was hit by a palm...Ch. 19.III - Ben Hoffman has motor vehicle liability insurance...Ch. 19.III - BUSINESS DECISION: INSURING THE FLEET
12. The...Ch. 19 - A mechanism for reducing financial risk and...Ch. 19 - 2. The amount of protection provided by an...Ch. 19 - Prob. 3CRCh. 19 - Prob. 4CRCh. 19 - Prob. 5CRCh. 19 - Prob. 6CRCh. 19 - Prob. 7CRCh. 19 - Prob. 8CRCh. 19 - The premium charged when a policy is canceled by...Ch. 19 - The clause in a property insurance policy...Ch. 19 - Prob. 11CRCh. 19 - Prob. 12CRCh. 19 - Prob. 13CRCh. 19 - Prob. 14CRCh. 19 - Prob. 1ATCh. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Prob. 5ATCh. 19 - Prob. 6ATCh. 19 - Prob. 7ATCh. 19 - 8. Mary Hall purchased a $45,000 20-year endowment...Ch. 19 - Prob. 9ATCh. 19 - Calculate the building, contents, and total...Ch. 19 - Prob. 11ATCh. 19 - Prob. 12ATCh. 19 - Prob. 13ATCh. 19 - Calculate the short-term premium and refund for...Ch. 19 - Prob. 15ATCh. 19 - Calculate the amount to be paid by the insurance...Ch. 19 - Prob. 17ATCh. 19 - Prob. 18ATCh. 19 - Prob. 19ATCh. 19 - Prob. 20ATCh. 19 - Prob. 21ATCh. 19 - Prob. 22ATCh. 19 - Prob. 23ATCh. 19 - Prob. 24AT
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.Similar questions
- Suppose a company charges an annual premium of $110 for an insurance policy for minor injuries. Actuarial studies show that in case of an injury claim, the company will pay out an average of $900 for outpatient care and an average of $3000 for an overnight stay in the hospital. They also determine that, on average, each year there are five claims made that result in outpatient care for every 1000 policies and three claims made that result in an overnight stay out of every 1000 policies. What is the expected annual profit of an insurance policy for the company?arrow_forwardNew Tax Accounting Clients. New legislation passed in 2017 by the U.S. Congress changed tax laws that affect how many people file their taxes in 2018 and beyond. These tax law changes will likely lead many people to seek tax advice from their accountants (The New York Times). Backen and Hayes LLC is an accounting firm in New York state. The accounting firm believes that it may have to hire additional accountants to assist with theincreased demand in tax advice for the upcoming tax season. Backen and Hayes LLC has developed the following probability distribution for x 5 number of new clients seeking tax advice. x f(x) 20 .05 25 .20 30 .25 35 .15 40 .15 45 .10 50 .10 a. Is this a valid probability distribution? Explain.b. What is the probability that Backen and Hayes LLC will obtain 40 or more new clients?c. What is the probability that Backen and Hayes LLC will obtain fewer than 35 new clients?d. Compute the expected value, variance, and standard deviation…arrow_forwardSuppose a company charges a premium of $150 per year for an insurance policy for storm damage to roofs. Actuarial studies show that in case of a storm, the insurance company will pay out an average of $8000 for damage to a composition shingle roof and an average of $12,000 for damage to a shake roof. They also determine that out of every 10,000 policies, there are 7 claims per year made on composition shingle roofs and 11 claims per year made on shake roofs. What is the company’s expected value (i.e., expected profit) per year of a storm insurance policy? What annual profit can the company expect if it issues 1000 such policies? Determine the probability of a composition shingle roof claim out of 10,000 = ______ Determine the probability of a shake roof claim out of 10,000 = ______ How many claims are made out of 10,000? = _______ What is the probability of no claims out of 10,000? = _______ How much does each shingle roof claim cost the company, don’t forget each person pays $150…arrow_forward
- The ABC Company is involved in the production and selling of consumer goods, particularly beauty products such as bath soap and shampoo and had registered a positive profit growth for the last 10 years. However, the current year seems to be different from those years as the company is expecting a decline in profit; which is estimated to be about 70% below the target. The manager now is in a dilemma … asking himself/herself “What happened, why this decline in profit?” The Manager then asked the company Accountant to give him/her the data on sales and advertising cost for the last 10 years – he/she wants these data to determine whether the company can live without advertising, as advertising cost happens to be substantial. Justify your answer by doing as step-by-step procedure in Correlation Analysis using a 0.05 level of significance. The data are as follows –arrow_forward....................... You may need to use the appropriate appendix table or technology to answer this question. Health insurers are beginning to offer telemedicine services online that replace the common office visit. A company provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments. The company claims that users of its online service saved a significant amount of money on a typical visit. The data shown below ($), for a sample of 20 online doctor visits, are consistent with the savings per visit reported by the company. 102 44 50 115 93 65 66 59 50 86 58 106 103 84 83 88 103 110 63 92 Assuming the population is roughly symmetric, construct a 95% confidence interval for the mean savings in dollars for a televisit to the doctor as opposed to an office visit. (Round your answers to the nearest cent.) $ to $arrow_forwardCase: Kodak Transitions Well into the Digital Market George Eastman was born in 1854 in Upstate New York. A high school dropout because of the untimely death of his father and the ensuing financial needs of his family, Eastman began his business career as a 14-year-old office boy in an insurance company, eventually taking charge of policy filing and even policy writing. In a few years, after studying accounting on the side, he became a bank clerk. When Eastman was 24, he was making plans for a trip to the Caribbean when a coworker suggested that he record the trip. Eastman bought considerable photographic equipment and learned how to take pictures. He described the complete outfit of his photographic equipment as a “pack-horse load.” Eastman never made the trip to the Caribbean, but he did spend the rest of his life in pursuit of simplifying the complicated photographic process, reducing the size of the load, and making picture taking available to everyone. After experimenting for…arrow_forward
- Line 1 Line 2 Line 3 Line 4 Line 5 Line 6 If taxable income is over But not over -- $9,275 37,650 91,150 190,150 413,350 $0 9,275 37,650 91,150 190,150 413,350 ↳ The tax is $0+10% 927.50+15% 5,183.75+25% 18,558.75+28% 46.278.75+33% 119,934.75+35% Use the table above to calculate the federal income tax due for a taxable income of $151,000. Of the amount over- $0 9,275 37,650 91.150 190,150 413,350arrow_forwardPerson A faces a 60% chance of having no loss and a 40% chance of having a loss of $25. Person B faces a 60% chance of having no loss and a 40% chance of having a loss of $50. Question 1: Suppose Person A purchases full insurance for an actuarially fair premium (AFP) and Person A is the ONLY person in the insurer's risk pool. a. What is the actuarially fair premium (AFP) of full insurance for Person A? b. What is the amount of risk the insurer faces?arrow_forwardNEED FULLY CORRECT HANDWRITTEN SOLUTION FOR THIS.... ASAP!!!!arrow_forward
- An electronics retailer offers an optional protection plan for a mobile phone it sells. Customers can choose to buy the protection plan for $100 and in case of an accident, the customer pays a $50 deductible and the retailer will cover the rest of the cost of that repair. The typical cost to the retailer is $200 per repair, and the plan covers a maximum of 3 repairs. Let X be the number of repairs a randomly chosen customer uses under the protection plan, and let F be the retailer's profit from one of these protection plans. Based on data from all of its customers, here are the probability distributions of X and F: Calculate the mean of X.arrow_forwardGroup problems: The Collision Problem: You have been hired by an insurance investigator to look into an accident involving a sailboat and a speedboat that occurred on New Year's day at 3:00 in the arternoon. Your job is to determine where (relative to the dock) the collision took place. After your investigation you ascertain the following facts about the case. The speedboat was carrying a toup of 20 people who were returning to shore after enjoying a 2-hour picnic on an island. The island is located 5.2 miles east and 12.6 miles north of the dock. The speedboat was heading from the island toward a point on the shore located 3.0 miles due west of the dock. Around the same time, the sailboat left the dock heading toward a buoy that is 5.0 miles west and 7.5 miles north of the dock. Neither boat made it to its destination since they collided in the water. You interviewed 5 witnesses and 2 lifeguards for 4 hours, in addition to studying nautical maps provided by the Navy. You plan to bill…arrow_forwardFor a lifetime life insurance purchased by someone aged 40, some of the following information is provided: • The death benefit is paid at the end of the year of death of $35000 if you die at age 20 year from first contract, $70000 if dies after 20 years of contract. • Premiums with the same amount are paid on average twice a year for a maximum of 20 years as long as they are alive. ä40 = 18,458 60= 14,904 ä50 = 17,025 ä(2) 40:201 = 19,628 ä(2)50:101 = 17,553 20E40 0,36663 10E50 0,60182 i = 0,05 Calculate the benefit reserve at time 10, that is 10V, using the prospective method! =arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Mod-01 Lec-01 Discrete probability distributions (Part 1); Author: nptelhrd;https://www.youtube.com/watch?v=6x1pL9Yov1k;License: Standard YouTube License, CC-BY
Discrete Probability Distributions; Author: Learn Something;https://www.youtube.com/watch?v=m9U4UelWLFs;License: Standard YouTube License, CC-BY
Probability Distribution Functions (PMF, PDF, CDF); Author: zedstatistics;https://www.youtube.com/watch?v=YXLVjCKVP7U;License: Standard YouTube License, CC-BY
Discrete Distributions: Binomial, Poisson and Hypergeometric | Statistics for Data Science; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=lHhyy4JMigg;License: Standard Youtube License