Business, 11.02.2021 20:40, angelinagiraffp538zb

Calculate the coefficient of variation of the following distributions and identify which distribution has the greatest risk. Distribution 1 Distribution 2 Distribution 3
Outcome Prob Outcome Prob Outcome Prob
$100 0.10 $100 0.20 $0 0.30
$400 0.20 $500 0.30 $200 0.10
$800 0.70 $600 0.50 $1000 0.60

Required:
a. Assume that a loss history is normally distributed with a mean of $5,000 and a standard deviation of $1,500. Whatâs the probability that the next loss will be greater than $5,750?
b. If the risk manager is willing to tolerate 2% chance that costs will be greater than the maximum probable loss, what is the maximum probable loss level?

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 02:00, raylynnreece4939

Precision dyes is analyzing two machines to determine which one it should purchase. the company requires a rate of return of 15 percent and uses straight-line depreciation to a zero book value over the life of its equipment. ignore bonus depreciation. machine a has a cost of $462,000, annual aftertax cash outflows of $46,200, and a four-year life. machine b costs $898,000, has annual aftertax cash outflows of $16,500, and has a seven-year life. whichever machine is purchased will be replaced at the end of its useful life. which machine should the company purchase and how much less is that machine's eac as compared to the other machine's

Answers: 3

continue

Business, 22.06.2019 16:30, emmmssss21

Bernard made a gift of $500,000 to his brother in 2014. due to bernard’s prior taxable gifts he paid $200,000 of gift tax. when bernard died in 2019, the applicable gift tax credit had increased. at bernard’s death, what amount related to the $500,000 gift to his brother is included in his gross estate?

Answers: 3

continue

Business, 22.06.2019 20:00, pickelswolf3036

On january 1, year 1, purl corp. purchased as a long-term investment $500,000 face amount of shaw, inc.’s 8% bonds for $456,200. the bonds were purchased to yield 10% interest. the bonds mature on january 1, year 6, and pay interest annually on january 1. purl uses the effective interest method of amortization. what amount (rounded to nearest $100) should purl report on its december 31, year 2, balance sheet for these held-to-maturity bonds?

Answers: 1

continue

Business, 22.06.2019 21:10, cece3467

Kinc. has provided the following data for the month of may: inventories: beginning ending work in process $ 17,000 $ 12,000 finished goods $ 46,000 $ 50,000 additional information: direct materials $ 57,000 direct labor cost $ 87,000 manufacturing overhead cost incurred $ 63,000 manufacturing overhead cost applied to work in process $ 61,000 any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. the adjusted cost of goods sold that appears on the income statement for may is:

Answers: 3

continue

Do you know the correct answer?

Calculate the coefficient of variation of the following distributions and identify which distributio...