An Aggie pays a premium of $15 to insure their $850 Aggie ring for one year. There is a 1% chance that the ring will nee

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An Aggie Pays A Premium Of 15 To Insure Their 850 Aggie Ring For One Year There Is A 1 Chance That The Ring Will Nee 1 (32.17 KiB) Viewed 34 times

An Aggie pays a premium of $15 to insure their $850 Aggie ring for one year. There is a 1% chance that the ring will need to be replaced, due to theft, during the year and a 2% chance the stone is damaged and will need repair during the year. The insurance company pays the full insured value if the ring is replaced, but only pays $150 for the repair of the stone. What is the insurance company's expected net gain on this policy? Round your answer to the nearest penny. O Loss of $11.05 O Loss of $11.50 Loss of $100 O Gain of $11.50 O Gain of $3.50