Expected value represents the average of all outcomes if one were to undertake the risky event many times over and over again
What will be an ideal response?
True. The expected value is not expected on any one outcome, because it represents the average of many outcomes.
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What is the relationship between total variable cost and marginal cost? Explain
What will be an ideal response?
Slight discrepancies in the rates of appreciation versus depreciation of two currencies are related to:
a. a mathematical quirk that percentage increases are always larger than percentage decreases because, in the first case, the denominator is smaller. b. the imprecise nature of the calculations. c. the lack of reliable information. d. the volatile nature of exchange rates.
Waybelow Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism. The university is now considering several alternative levels of crime control. This table shows the expected annual costs and benefits of these alternatives. Total Costs Per YearTotal Benefits Per Year (Reduction in the Costs of Crime)Level One - 1 Security Officer$20,000$80,000Level Two - 1 Security Officer with Guard Dog30,000120,000Level Three - 1 Security Officer with Guard Dog and Patrol Car40,000140,000Level Four - 2 Security Officers with Guard Dog50,000155,000Level Five - 2 Security Officers with Guard Dog and Patrol Car60,000160,000Refer to the above information. If Waybelow undertakes Level Three:
A. there would be an overallocation of resources to crime control. B. marginal costs will exceed marginal benefits. C. total benefits will be less than total costs. D. there would be an underallocation of resources to crime control.
If a life insurance company does not require a medical exam of its policyholders, it is most likely that the company
A) charges above-average premiums. B) charges below-average premiums. C) charges no premiums. D) has only very healthy policyholders.