Tow finance questions

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6. The underwriter at Houston insurance must choose between two accounts to provide insurance coverage. Both accounts have provided a probability distribution based on past losses. Account A’s distribution has a mean of $8,500 and a standard deviation of $17,000. Accounts B’s distribution has a mean of $10,000 and standard deviation of $18,000. Which account has a greater variability relative to its mean?

9. Compute the following measurements on the loss of inventory that is for sale at the front of the restaurant:

Probability Loss

.05 100

.3 300

.5 500

.15 2000

a. Expected Value

b. Variance

c. Standard Deviation

d. Coefficient of Variation

e. In what Range, approximately, should theft losses fall 95 percent of the time.