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For example, when buying or selling an insurance policy, it is important for the two parties to understand the risks involved. These risks are analyzed, and their impact evaluated. This helps in determining the actual amount of the policy and the terms of payment.
Secondly, mathematical techniques are used in analyzing utility curves. These curves are useful in determining how much a consumer is going to buy insurance for (Green, 96). In normal cases, the insuring firm has to charge the customer a fee more than the value of the risk. The utility curves thus help the insurance company determine the exact amount the customer is going to pay for the insurance. For example, if a consumer’s average loss per year for repairing his car is $10000, then the insurance company has to charge a fee above this figure for the insurance. This can only be achieved if mathematical techniques are used so as to calculate the actual profit percentage that the insurance company will charge.
Thirdly, the insurance sector heavily relies on market research in the development of the various policies and understanding of the existing ones (Green, 97). Market research helps the insurance firms understand the best policies that will satisfy the demands of the market. For example, a company might want to study the market potential before developing a new insurance policy. In order to avoid losses, the company needs to have accurate information about the market. Mathematics is heavily applied in market research. For instance, random sampling can be employed by the insurance firms to understand various phenomenons in the market. In order to effectively collect, organize and analyze such data, mathematical techniques are required for accuracy. In particular, statistical methods are used in marketing research where variables such as standard deviation and variance help in the analysis of the collected data.
Finally, applied mathematics is useful when it
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These plan are customized according to the consumer needs and requirements and in most cases are pre-defined. Aetna insurance plans are usually designed considering health care management of its customers. Customers of Aetna Foundation comprise of students, families, college students, individuals, employer groups, labour groups, governmental employee & organizations.
Answer: Three ways in which we can deal with insurable risks. We can chose to take comprehensive policies which cover all risk. With respect to the content of the house, actual cash value insurance or replacement cost insurance policy can be taken. To reduce the cost of
Feel free to use the internet to flesh out information. Document the store (stores, farmers markets) you went to, the item type, brand and location from where it came from. If you eat an item that has ingredients from multiple locations and it is marked on
People who suddenly inherit great wealth may purchase a Mercedes or other luxury items and would probably no longer buy do-it-yourself repair kits
The prices of other goods also affect consumers’ purchase decisions. Before deciding to buy Levi’s jeans, you might
In our daily life would be rather inactive without the knowledge of mathematics. There are several lines of duties where individuals use basic mathematics in their living. Below is a list of some methods where people use mathematics.
Subsequently, applied logic helps individuals to use their practical art of valid reasoning that is essential in guiding them to draw the conclusion in a specific situation (Lynch pg. 126). In that sense,
2- You are setting up a PCR reaction and the protocol asks you to add 0.2ng of DNA to the reaction. You have a sample of DNA which is 3mg/ml. Describe your approach to adding the same volume in parts per million to the reaction? Be specific, describe your
Model 2 is therefore valid and this means that ln(population) and ln(GDP) are inversely proportional to government’s share of expenditure relative to GDP.
The R2 value in model 2 would remain the same despite change in unit measure of GDP.
In the second variable, the weighted distance to five major employment centers in the Boston region (DIS), the order of coefficients; 0.028, 0.027, and 0.027 in absolute values. In the criteria of absolutism, a one percent change in DIS
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