8.64 Claims fraud (illegitimate claims) and buildup (exaggerated loss amounts) continue to be major issues of concern among au- tomobile insurance companies. Fraud is defined as specific ma- terial misrepresentation of the facts of a loss; buildup is defined as the inflation of an otherwise legitimate claim. A recent study examined auto injury claims closed with payment under private passenger coverages. Detailed data on injury, medical treatment, claimed losses, and total payments, as well as claim-handling techniques, were collected. In addition, auditors were asked to re- view the claim files to indicate whether specific elements of fraud or buildup appeared in the claim and, in the case of buildup, specify the amount of excess payment. The file InsuranceClaims contains data for 90 randomly selected auto injury claims. The fol- lowing variables are included: CLAIM–Claim ID; BUILDUP–1 if buildup indicated, 0 if not; and EXCESSPAYMENT–excess payment amount, in dollars. a. Construct a 95% confidence interval for the population propor- tion of all auto injury files that have exaggerated loss amounts.
b. Construct a 95% confidence interval for the population mean dollar excess payment amount.

James sebenius, in his harvard business review article: six habits of merely effective negotiators, identifies six mistakes that negotiators make that keep them from solving the right problem. identify which mistake is being described. striving for a “win-win” agreement results in differences being overlooked that may result in joint gains.

On july 1, 2016, killearn company acquired 103,000 of the outstanding shares of shaun company for $21 per share. this acquisition gave killearn a 40 percent ownership of shaun and allowed killearn to significantly influence the investee's decisions. as of july 1, 2016, the investee had assets with a book value of $6 million and liabilities of $1,468,500. at the time, shaun held equipment appraised at $140,000 above book value; it was considered to have a seven-year remaining life with no salvage value. shaun also held a copyright with a five-year remaining life on its books that was undervalued by $562,500. any remaining excess cost was attributable to goodwill. depreciation and amortization are computed using the straight-line method. killearn applies the equity method for its investment in shaun. shaun's policy is to declare and pay a $1 per share cash dividend every april 1 and october 1. shaun's income, earned evenly throughout each year, was $580,000 in 2016, $606,600 in 2017, and $649,200 in 2018. in addition, killearn sold inventory costing $93,000 to shaun for $155,000 during 2017. shaun resold $97,500 of this inventory during 2017 and the remaining $57,500 during 2018.a. determine the equity income to be recognized by killearn during each of these years. 2016 2017 2018b. compute killearn’s investment in shaun company’s balance as of december 31, 2018.

Gary becker's controversial the economics of discrimination concludes that price discrimination has no effect on final profits. price discrimination benefits monopolies. labor discrimination in hiring results in more efficient allocations of production. discrimination in hiring practices has no effect on final profits. labor discrimination harms firms that practice it due to increased labor costs. price discrimination harms monopolies, which refutes over two centuries of economic theory.