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An insurance agency sells auto and home insurance policies and has 1000 clients. The data below show the distribution of the clients. 300 clients purchase only auto insurance policies 500 clients purchase both, auto AND home insurance policies 200 clients purchase only home insurance policies.
What is the probability of purchasing home insurance conditional on purchasing auto insurance, i.e. the conditional probability?
A German mutual fund sells Euros to a U.S. bank for $20,000. The mutual fund then uses these dollars to purchase a bond issued by United Express, a U.S. delivery company. As a result of these two transactions, what happened to U.S. net capital outflo..
In the country of Drazah Larom (moral hazard spelled backward), health insurance is nonexistent and all medical markets are perfectly competitive. Use supply and demand analysis to explain the impact of the following changes on the price and output o..
q1. price fixing is a per se violation of the clayton antitrust act. from the materials in the library and the internet
Which decision should Paul make using the expected utility approach? Compare with the decision using the expected value approach.
What factors in socio-cultural segment can have significant impact on U.S. restaurant industry? How does each of these factors shape the growth and changes of the industry? What are the future trend of each factor and the resulting changes of the ind..
Assuming that land and labour are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners in Texas.
Xaquane and Yullare are obscure but talented 18th century painters. The world’s stock of Xaquanes is 100 and the world’s stock of Yullares is 70. The demand for each painter’s work depends on its own price and the price of the other painter’s work. W..
Government fiscal policy and international trade seem to be linked. Let’s investigate their relationship. Say a government is currently running a budget deficit and decides to cut taxes, increase spending, or both. Explain how this will affect intere..
Explain why a university degree can be treated as a form of capital. 'Most countries import substantial amounts of goods and services from other countries.’
The Walton Daily News is investigating the purchase of a new auxiliary press that has a projected life of 18 years. It is estimated that the new press will save $30,000 per year in cash operating costs. If the new press costs $217,500, what is its in..
Does this model of coverage afford well or poorly with the model of demand for insurance set forth? What should we conclude from this?
Elucidate why from an economic point of view towing a car illegally parked rather than just ticketing it provides a better incentive.
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