The consideration paid to an insurer to obtain an insurance policy is the premium.
Answer the following statement true (T) or false (F)
True
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A random sample of 144 bottles of cologne showed an average content of 4 ounces. It is known that the standard deviation of the contents (i.e., of the population) is 0.3 ounces. In this problem the 0.3 is
A. a parameter. B. a statistic. C. the standard error of the mean. D. the average content of colognes in the long run.
The process of restating cash flows in terms of their present values is called discounting.
Answer the following statement true (T) or false (F)
Which of the following statements about the various kinds of risk is true??
A. ?Interest rate risk and inflation risk are diversifiable risks. B. ?Liquidity risk and political risk are systematic risks. C. ?Business risk and exchange rate risk are firm-specific risks. D. ?Financial risk and maturity risk are market risks. E. ?Default risk and inflation risk are relevant risks.
______ are periodic, fairly short-term fluctuations in demand often caused by human activities or weather.
a. Cyclical variations b. Seasonal variations c. Irregular variations d. Random variations