Solution-What full insurance preferred to deductible

What full insurance preferred to deductible insurance

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Reference no: EM132694556

A clothing manufacturer is considering the following 4 options to handle the risk they face with the following respective costs:

Retention

Expected Cost of 600

Partial insurance

Expected Cost of 800

Deductible insurance

Expected Cost of 900

Full insurance

Expected Cost of 1000

Problem a. If the risk manager makes decisions by minimizing TOTAL COST, show what conditions on the WVs would make:

Full insurance preferred to Deductible Insurance? Show all work and explain the numerical answer.
Partial insurance preferred to Retention?

Reference no: EM132694556

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What full insurance preferred to deductible insurance

Reference no: EM132694556

Reference no: EM132694556

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