Revise just prior AIS

One of the firm’s warehouse areas is located in a climate-vulnerable area. The

likelihood of an extreme climate event (e.g., earthquakes, floods, typhoons) to

occur and damage the warehouse area is estimated as small as 1%; however, once

the event(s) occur(s), the firm is estimated to suffer an annual loss of 800,000 in

the affected financial year. Concerned with the extreme climate event(s), the firm

owner has considered purchasing one of the following insurance plans:

Plan #1: The “Full-Protect” plan offered by a small local insurance company

established just one month ago. This insurance plan promises to compensate the

firm $750,000, once the warehouse area is damaged by any extreme climate

event(s). The insurance plan, however, will cost the firm an annual premium of

$5,000.

Plan #2: The “Eco-Save” offered by an experienced large insurance company. This

insurance plan promises to compensate the firm $400,000, once the warehouse

area is damaged by any extreme climate event(s). The insurance plan, however, will

cost the firm an annual premium of $1,700.

Please advise the firm owner which plan to purchase based on (a) the net expected

benefits brought by the two plans, and (b) ONE non-financial consideration to be

considered.


what is the formula as well

No protection expected loss

EL = $800 000 × 1% = $8 000

with plan 1
net expected benefits = probabilyt x compensation - annual premium

neb = 0.01 × 750 000 - 5 000

neb = 2 500

Plan 2
neb = probability x compensation - annual premium

neb = 0.01 × 400 000 - 1 700

neb = 2 300

Question 3: Cybersecurity Insurance

A technology firm faces the risk of a major cyberattack that could result in the theft of customer information and disruption to its operations. The probability of a major cyberattack occurring in a given year is estimated to be 5%. If such an attack occurs, the firm is expected to incur a loss of $400,000.

The firm is considering two cybersecurity insurance plans.

Plan #1: The “Cyber-Max” plan

Offered by a new insurance provider that has been operating for three months. The plan compensates the firm $350,000 if it suffers a major cyberattack. The annual premium is $7,000.

Plan #2: The “Cyber-Safe” plan

Offered by an established international insurance provider. The plan compensates the firm $200,000 if it suffers a major cyberattack. The annual premium is $4,000.

Required:

(a) Calculate the net expected benefits of the two insurance plans and advise the firm which plan to choose.

NEB plan 1
0.05 x $350 000 - 7 000
= $10 500

NEB Plan 2
0.05 × 200 000 - 4 000
= $6 000

Choose NEB plan 1 since you get higher value

How do you do mean imputation

1. calcualte the mean of the existing value

2. divide the mean by the number of values

3. the answer is teh mean imputation value

How do you know what table goes inthe middle and what table doesnt

• the only way you can tell is by seeing what already has the relationshpi between them e.g. if supplier is supplying materials thats one and the product uses materials is another. so since they both use mateirals it should go in the middle make sense? use your logical reasoning to figure this out

When is it always a one to one relationship in a relational database

• the one that goes FROM the bridging table —→ original table is the ONE to ONE relationship ALWAYS

What is it ALWYS when going form original to briding table

• it is always many!!

• however the optionality and cardinality depends on what the table shows, if it originally shows product to material is compulsory, then the product to the bridging table for product and machinery is ALSO compulsory SO IT STAYS THE SAME!!! dependin on where you’re going from.

what are the following in a blockochain

• data validity

• data retention

• data integrity

• data security

• data transparancy

data validtiy - Miners verify validation of transactions by a majority consensus prior to entry in a blockchain ledger
data retention - Each node can potentially back up the entire blockchain ledger to provide multiple copies.

data integrity - A transaction is immutable once entered into a blockchain ledger and cannot be changed or deleted.

data securtiy - A majority of participants in a blockchain must generally engage in fraud malfeasance for it to happen

data transparency - A blockchain is widely distributed, whereas a traditional ledger is not.

What is the segregation of duties

Custodial Function

• Handling cash or funds at the bank

• Approving the release of funds

• Receiving cash in the mail

Authorization function

• authorizing the transaction

Recording function

• preparing source documents

• maintaining journals, ledgers etc.

What are the steps for ETL

• Extract:

  1. Understand data needs and what’s available.

  2. Obtain and perform the extraction.

  3. Verify quality and document.

• Transform:

  1. Understand the data and desired outcome.

  2. Standardise, structure and clean.

  3. Validate quality.

  4. Document (update the data dictionary).

• Load: store the data in a format the receiving software accepts, check how that software interprets it, and update the data dictionary.

What is the revenue cycle drawing processes

1. Sales order entry

2. Shipping

3. Billing

4. Cash collections

What is the expenditure cycle porcesses that are needed

1. Order materials

   1. suppliers and services

2. Recieve materials

   1. suppliers and supplies

3. Approve suppleirs (vendor invoice)
   
   

4. Cash disbursments

What are the sales order entry steps

1. Take customer orders,

2. check and approve customer credit

3. check inventory available

4. respond to customer inquiries

How do you complete the mean imputation

1. find teh mean of the known valeus

2. divide the mean by the number of values

3. answer is the mean imputation value that is given