# Fire Assignment

Words: 395

Project 2 The Furniture Fire Case Presented by Group Roots Case History In 1992, an accidental fire destroyed a furniture warehouse in Tampa, FL. Upon these findings, the furniture company made a claim to their insurance company for demand of lost profits. In doing so, the furniture company submitted a profit calculation, or the GPF, of the burned inventory. Determining Factors Because there were no sales receipts and the prices were unknown, the furniture company used 253 random invoices pulled from the 3005 total invoices from 1991 to calculate the average GPF.

These invoices were then separated into 2 groups. One consisting of 134 samples and the other one had 119 samples. The GPF calculated for the 134 group was 50. 5%. The 119 group GPF was 51. 0%. The average GPF for the two was 50. 8%. Because the average GPF for this type of business is typically 48%, the insurance company contested this while the furniture company maintained that the samples were completely random. To put this in terms we can all understand, we must know that 1% is equal to \$16,000.