Assumption of independence of risks

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Q1. If it costs $2,000 to pick up the litter along a highway, then Elucidate how much does the externality cost?

Q2. Talk about the ethical matters that have developed regarding the use of IT in cross-border transaction.

Q3. Why does the assumption of independence of risks matter in the examples of insurance? Illustrate what would happen to premiums if the probabilities of houses burning were positively correlated? Can you think of a situation where they might be negatively correlated?

Reference no: EM1311979

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