Why does the assumption of independence of risks matter, Microeconomics

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Why does the assumption of independence of risks matter

Why does the assumption of independence of risks matter in the examples of insurance? what would happen to premiums if the probabilities of house burning were postively correlated? Can you think of a situation where they might be negatively correlated?

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Microeconomics: Why does the assumption of independence of risks matter

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Microeconomics: Why does the assumption of independence of risks matter

Reference No:- TGS061339

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Explain does either firm have a dominant strategy

Q : The implications of the changing demographics in korea

Q : Common law tradition and sources of law

Q : Computation of aggregate demand and supply

Q : Why does the assumption of independence of risks matter

Q : How do make a sentence with the word metaphor

Q : Maturity on new issues of similar corporate bonds

Q : Needed steps to conduct a successful research

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Why does the assumption of independence of risks matter

Reference No:- TGS061339

Recent Questions Asked Microeconomics

Q : Explain does either firm have a dominant strategy

Q : The implications of the changing demographics in korea

Q : Common law tradition and sources of law

Q : Computation of aggregate demand and supply

Q : Why does the assumption of independence of risks matter

Q : How do make a sentence with the word metaphor

Q : Maturity on new issues of similar corporate bonds

Q : Needed steps to conduct a successful research

Q : Income determination model of an economy

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