part D E F G Kimberly-Clark Company owns a warehouse worth S60,000. Ray Van Eperen is the riskmanager. Kimberly-Clark faces the risk of fire which would completely destroy theirwarehouse. The probability of a fire is known to be 6%.Kimberly-Clark is considering the following risk management options to address therisk of fire to their warehouse:1.[1][2]RetentionFull Insurance for a premium of $4,200[3] Safety Program + RetentionSafety Program + Full Insurance [premium falls to $1,600][4]The cost of the Safety Program is $2,800. It has the impact of lowering the probability ofa fire from 6% to 2%. However, if a fire does occur it is still a total loss.Construct the loss matrix from Kimberly-Clark's perspective. Make sure you showloss in the top row and out-of-pocket cost in the bottom row in each cell of the loss matrix.Construct the payout matrix from an insurer's perspective.What is the actuarially fair premium [AFP] for full insurance without the safetyprogram? What is the AFP for full insurance with the safety program? Show allа.C.work.Assume Ray's worry value for retention without safety program (WVR) is $900 and hisworry value for retention with safety program (WVR3) is $350.d.If Ray's decision rule is to pick the option that minimizes TOTAL EXPECTEDCOST, what risk management option does he choose? Make sure that you showall calculations and clearly define TOTAL EXPECTED COST in each case.What is Ray's PMAX for full insurance without the safety program as opposed toretention without the safety program? Show all work.During a meeting, the Chief Risk Officer (CRO) told Ray that the most he wouldpay for full insurance without the safety program (as opposed to retentionwithout the safety program) is $4,700. What is the CRO's worry value forretention without safety program (WVR)? Show all work.Who is more risk averse, the CRO or Ray? Explain.е.f.g.b.

Somebody who is risk-averse has the trademark or characteristic of leaning toward staying away from…

Assume Ray's worry value for retention without safety program (WVR) is $900 and his worry value for retention with safety program (WVR5) is $350. d. If Ray's decision rule is to pick the option that minimizes TOTAL EXPECTED COST, what risk management option does he choose? Make sure that you show all calculations and clearly define TOTAL EXPECTED COST in each case. What is Ray's PatAx for full insurance without the safety program as opposed to retention without the safety program? Show all work. During a meeting, the Chief Risk Officer (CRO) told Ray that the most he would pay for full insurance without the safety program (as opposed to retention without the safety program) is $4,700. What is the CRO's worry value for retention without safety program (WVR)? Show all work. Who is more risk averse the CRO or Rav? Eynlain е. f.

Assume Ray's worry value for retention without safety program (WVR) is $900 and his worry value for retention with safety program (WVR5) is $350. d. If Ray's decision rule is to pick the option that minimizes TOTAL EXPECTED COST, what risk management option does he choose? Make sure that you show all calculations and clearly define TOTAL EXPECTED COST in each case. What is Ray's PatAx for full insurance without the safety program as opposed to retention without the safety program? Show all work. During a meeting, the Chief Risk Officer (CRO) told Ray that the most he would pay for full insurance without the safety program (as opposed to retention without the safety program) is $4,700. What is the CRO's worry value for retention without safety program (WVR)? Show all work. Who is more risk averse the CRO or Rav? Eynlain е. f.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Pls help ASAP
Need from d to g
20 "customers complaints" and "product returns" are example of A.unstructed decision B.unstructured problem C. structured problem D. non-programmed decision E. programmed decision
Can i get help with question 3 and 4
Help with question 4
page 1 of 16) | EC x education.nsw.gov.au x + evidencecentral.info/mod/quiz/attempt.php?attempt=1276891&cmid=11924 M Gmail YouTube Maps Play Blooket MO Maths Online Adobe Acrobat D Plagiarism Checker... THE CAREERS DEPA... fn Summar 3 ction Learning 23-24 Assessment 24-25 Assessment SBAT HSC Trial School HSC Trial VWC TQI VETCT More ✓ v V Back Question 1 Hot changed ince last ttempt Marked out of 00 -Flag uestion Legislation, regulations, and codes of practice in agriculture affect all employees and employers within the industry. Match the farming task with a legislation, regulation or code of practice that would apply to that task. Working with animals on a property Storing animal treatments Reporting animals who have a notifiable disease Providing welfare needs to animals Transport livestock Safe Use and Storage of Chemicals in Agriculture Code of Practice Codes of practice for the welfare of livestock Australian Animal Welfare Standards and Guidelines for Sheep Biosecurity Act 2015…
DORATHY RAYMOND ISAFE MLO Test-National Component with Unform State Content) Session 1- Question 7 of 120 (r answered Under SAFE Act regulations, which of the following statements is true? D Loan processors and originators have to be licensed as mortgage loan originators (MLOS). Loan processors and underwriters have to be licensed as MLOS. Loan processors and underwriters who are not employed by a bank (depository institution) have to be licensed as MLOS. A loan processor or underwriter who is an employee of a licensed mortgage lender and who operates under the supervision of a licensed MLO is not requires be licensed as an MLO.
State TWO (2) features of a control system that is used at the tactical level of management in a commercial entity