Sue is a small business owner who often gives gifts to clients. she gives a $40 gift to her client, mr. smith, and his wife. sue spent $6 to wrap the gift. she also gave out 400 calendars with her company name on them. each calendar cost $1. sue also gave her secretary a $370 watch for his 10 years of service. how much of the above expenses may she deduct? a. $816 b. $446 c. $795 d. $801 e. none of the above

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value