An insurance policy sells for $600. Based on past data, an average of 1 in 50 policyholders will file a $10,000 clai
Posted: Wed May 11, 2022 8:06 am
An insurance policy sells for $600. Based on past data, an
average of 1 in 50 policyholders will file a $10,000 claim, an
average of 1 in 250 policyholders will file a $50,000 claim, and
an average of 1 in 500 policyholders will file $80,000 claim. Find
the expected value (to the company) per policy sold. If the
company sells 20,000policies, what is the expected profit or
loss?
average of 1 in 50 policyholders will file a $10,000 claim, an
average of 1 in 250 policyholders will file a $50,000 claim, and
an average of 1 in 500 policyholders will file $80,000 claim. Find
the expected value (to the company) per policy sold. If the
company sells 20,000policies, what is the expected profit or
loss?