West Coast Insurance writes property and liability insurance in California, Oregon, and Washington. These states are all susceptible to earthquakes
To help determine how much reinsurance to purchase, West Coast Insurance hired an organization to use a computer algorithm to estimate what its insured losses would be if a severe earthquake occurred. West Coast Insurance based its purchase of reinsurance on the loss estimates. This scenario illustrates using
A) value-at-risk analysis.
B) catastrophe modeling.
C) risk mapping.
D) a risk management information system.
Answer: B
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Assuming the football helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the football helmet line is used to double the production of batting helmets, operating income will be ________.
Head Bucket, Inc. has two product lines—batting helmets and football helmets. The income statement data for the most recent year is as follows:
A) $350,000
B) $160,000
C) $540,000
D) $280,000
Dan, a property manager at a large real estate development company, has a videoconference today using the technology called telepresence. He should therefore,
A) be ready to give a speech because that is the purpose of telepresence. B) be prepared to practice a skit about his company. C) be extra sharp today because telepresence captures so many details about a person. D) not worry about his personal appearance because telepresence displays only silhouettes of people.
Ullrich Printing Inc. paid out $21,750 of common dividends during the year. It ended the year with $187,500 of retained earnings versus the prior year's retained earnings of $132,250. How much net income did the firm earn during the year?
A. $77,000 B. $80,850 C. $84,893 D. $89,137 E. $93,594
Which of the following approaches to solving integer linear optimization problems tries to identify the convex hull by adding a series of new constraints that do not exclude any feasible integer points?
A. Branch-and bound approach B. Cutting plane approach C. Trial-and-error approach D. Convex hull approach