**This is a Multi-Part Multiple Choice Question = worth 8 points total Mark is the Risk Manager of Crown Condo Inc. – which owns a $500,000 wood frame condominium building in Redding, California. Being located in Northern California, the condo building faces the peril of wildfire.  If no wildfire strikes the area (No Loss) = then no loss occurs to the condo building. If a wildfire would strike the area, it would completely destroy the entire condo building (Total Loss of the value of the building) Mark estimates the probability of a wildfire striking the area = 1.5%  Mark is deciding between three Risk Management Options for the Crown Condo building:  1) Retention 2) Deductible Insurance  Policy Limit = $500,000 (the value of the building) Deductible = $3,000 Premium = $10,000 3) FULL Insurance  Face Amount = $500,000 There is no deductible with Full Insurance  Premium = $15,000   Question #1: Complete the below Loss Matrix based on the information provided to you above:  Risk Mgmt. Option No Loss Total Loss  RM Option #1 = Retention Loss Amount Risk Treatment Costs RM Option #2 = Deductible Insurance Loss Amount Risk Treatment Costs RM Option #3 = Full Insurance Loss Amount Risk Treatment Costs   Question #2: Mark’s Worry Value for each of the three risk management options is as follows:  Worry Value for Retention = $5,000 Worry Value for Deductible Insurance = $1,500 Worry Value for Full Insurance = ???   Calculate the TOTAL COST of each of the three risk management options:  ***The first component of Total Cost = the Expected Value or Loss > has been provided for you… no need to calculate it!    RM Option #1: Retention > TOTAL COST = ($7,500) + (?) + (?) = RM Option #2: Deductible Insurance > TOTAL COST = ($45) + (?) + (?) = RM Option #3: Full Insurance > TOTAL COST = ($0) + (?) + (?) =     Question #3: If Mark’s decision rule is to minimize Total Cost – which risk management option does he choose?  =

Homeowners insurance is indemnification against unexpected home damages. However, in class we discussed how flooding is not a covered loss event on most homeowner’s insurance contracts.  This is primarily because: 

Kreiman et al. (2000) found neurons that responded intensely when a person looked at specific objects, such as a baseball, while not responding to others, such as a face. Further, they showed that these neurons _____ .

Assuming that 50% of the offspring are male and 50% are female, what is the probability of this couple having a daughter with long index fingers?

Using _____ , Kosslyn et al. (1999) found that the brain activity in the visual cortex plays a causal role in _____ .

Radial symmetry is seen in a ________.  

Carl works for FEDEX as a delivery driver. Over the weekend on his days off from work, Carl was playing in an intermural soccer league with his friends. Unfortunately, during the game he tripped and tore his ACL. He was sent to the hospital and treated for his injuries, which cost a total of $10,000. Additionally, Carl will not be able to work his FEDEX job for at least 6 months while he recovers from his knee injury.  The above scenario presents which of the following types of risk for Carl?   I. Personal Risk, specifically Loss of Income II. Personal Risk, specifically Medical Expenses III. Hazard Risk, specifically Personnel Exposure

If a population’s growth rate decreases as the population size approaches carrying capacity, the population’s growth follows a(n) _________ model.  

When playing the fMRI version of the Ultimatum Game, an increased activation was seen in the insula and the prefrontal cortex areas of the brain. The activation in the prefrontal cortex has been interpreted to indicate the negative emotion associated with unfairness and to drive the decision to reject an unfair offer.

True-breeding tall plants with white flowers are crossed to true-breeding dwarf plants with purple flowers. The F1 plants were tall with purple flowers. The genes that affect these traits independently assort. If the F1 plants were allowed to self-fertilize, the expected ratio of the F2 generation would be