An automobile insurer has found that repair claims have a mean of $1520 and a standard deviation of $770. Suppose that the next 100 claims can be regarded as a random sample from the long-run claims process. The mean and standard deviation of the average x of the next 100 claims is: a. mean = $1,520 and standard deviation = $77
b. mean = $1,520 and standard deviation = $7.70
c. mean = $152 and standard deviation = $77
d. mean = $152 and standard deviation = $770

When a shortage or a surplus arises in the loanable funds market a. the supply of loanable funds changes to return the economy to its original real interest rate b. the nominal interest rate is pulled to the new equilibrium level c. the demand for loanable funds changes to return the economy to its original real interest rate d. the real interest rate is pulled to the new equilibrium level

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan

The ultimate objective of every firm, such as ibm, hewlett-packard, jcpenney, must be to