Assuming homogenous and independent exposures, the effects of risk pooling arrangements can be summarized as: the greater the number of participants in the risk pool, _______________. Assuming homogenous and independent exposures, the effects of risk pooling arrangements can be summarized as: the greater the number of participants in the risk pool, _______________. The more closely the actual average loss will approach the average expected loss The greater will be the pool’s correlation The lower the average expected loss The greater will be the standard deviation of the pool’s loss distribution
Assuming homogenous and independent exposures, the effects of risk pooling arrangements can be summarized as: the greater the number of participants in the risk pool, _______________. Assuming homogenous and independent exposures, the effects of risk pooling arrangements can be summarized as: the greater the number of participants in the risk pool, _______________. The more closely the actual average loss will approach the average expected loss The greater will be the pool’s correlation The lower the average expected loss The greater will be the standard deviation of the pool’s loss distribution
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...
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Assuming homogenous and independent exposures, the effects of risk pooling arrangements can be summarized as: the greater the number of participants in the risk pool, _______________.
Assuming homogenous and independent exposures, the effects of risk pooling arrangements can be summarized as: the greater the number of participants in the risk pool, _______________.
The more closely the actual average loss will approach the average expected loss
The greater will be the pool’s correlation
The lower the average expected loss
The greater will be the standard deviation of the pool’s loss distribution
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