Final answer:
The subject addresses business decision-making based on the analysis of fixed and variable costs, revenues, and the principles of insurance underwriting. It involves understanding when a business should continue operations and how insurance companies calculate premiums based on risk.
Step-by-step explanation:
The question seems to be related to the concept of breakeven analysis and decision-making in business based on costs and revenues. The reimbursement rate for Eddie Felson and the reference to fixed and variable costs indicate a discussion on how businesses calculate expenses and earnings, and how they make financial decisions.
In particular, when a business center earns revenues of $20,000 and has variable costs of $15,000, the decision to continue in business suggests that the center is covering its variable costs and contributing to fixed costs. If the center can cover the full fixed costs and still remain profitable, it should indeed continue in business.
Also, an insurance company that collects $186,000 in premiums to cover the costs of accidents is utilizing the principle of risk pooling in insurance underwriting.
Lastly, the mention of car maintenance costs being exponentially distributed relates to the probability distribution and mean costs associated with vehicle maintenance, which is a concern in statistical analyses related to business operations.