Delta Diamonds uses a periodic inventory system. The company had five one-carat diamonds available for sale this year:
One was purchased on June 1 for $950, two were purchased on July 9 for $1,000 each, and two were purchased on September 23 for $1,050 each. On December 24, it sold one of the diamonds that was purchased on July 9.
Using the specific identification method, its ending inventory (after the December 24 sale) equals $.

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value