Page 1 of 1
The table shows claims and their probabilities for an insurance company a. Calculate the expected value. $ Amount of cla
Posted: Wed Jul 06, 2022 11:54 am
by answerhappygod
- The Table Shows Claims And Their Probabilities For An Insurance Company A Calculate The Expected Value Amount Of Cla 1 (195.7 KiB) Viewed 11 times
The table shows claims and their probabilities for an insurance
company a. Calculate the expected value. $ Amount of claim (to the nearest SIMONID $20,000) $0 $20,000 $40,000 $60,000 $80.000 $100,000 Probability 0.70 0.21 0.05 0.02 0.01 0.01 b. How much should the
company charge as an average premium so that it breaks even on its claim costs? c. How much should the
company charge to make a profit of $50 per policy?