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Assume that for an e-commerce firm, the stock market loss of breach is estimated at $125,000. A company selects a policy with a deductible of $50,000. Let the direct loss from a breach be such that there is either a Low loss of L (with probability p) or a Medium loss M (with probability q) or a High loss H (with probability 1 - p - q). Assume that the firm is not obliged by law to disclose a breach.
The insurer provides the following (traditional) formula to the firm to calculate the premium P(x) based on the deductible, x:
P(x) = 1.05 [p*(L-x) + q*(M-x) + (1-p-q)*(H-x)]
The firm estimates L = $100,000 (with a probability of 0.4), M = $200,000 (with a probability of 0.4) and H = $600,000 (with a probability of 0.2).
Should the firm claim when the loss is low? Medium? High?
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.
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Prepare a major handout on the key principles of instructional leadership
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