Payoff Insurance Company charges a customeraccording to his or her accident history. A customer whohas had no accident during the last two years is charged a$100 annual premium. Any customer who has had anaccident during each of the last two years is charged a $400annual premium. A customer who has had an accident duringonly one of the last two years is charged an annual premiumof $300. A customer who has had an accident during the lastyear has a 10% chance of having an accident during thecurrent year. If a customer has not had an accident duringthe last year, there is only a 3% chance that he or she willhave an accident during the current year. During a givenyear, what is the average premium paid by a Payoffcustomer?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Payoff Insurance Company charges a customer
according to his or her accident history. A customer who
has had no accident during the last two years is charged a
$100 annual premium. Any customer who has had an
accident during each of the last two years is charged a $400
annual premium. A customer who has had an accident during
only one of the last two years is charged an annual premium
of $300. A customer who has had an accident during the last
year has a 10% chance of having an accident during the
current year. If a customer has not had an accident during
the last year, there is only a 3% chance that he or she will
have an accident during the current year. During a given
year, what is the average premium paid by a Payoff
customer?
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