An insurance policy sells for $1000. Based on past data, an average of 1 in 125 policyholders will file a $10,000 cl
Posted: Mon Jul 11, 2022 12:49 pm
An insurance policy sells for $1000. Based on past data,an average of 1 in 125 policyholders will file a $10,000 claim,and an average of 1 in 200 policyholders will file a $40,000
claim, and an average of 1 in 400 policyholders will file an$80,000 claim. Find the expected value (to the company) perpolicy sold. If the company sells 20,000
policies, what is the expected profit or loss?
The expected value is $
The expected (loss/profit) is $
claim, and an average of 1 in 400 policyholders will file an$80,000 claim. Find the expected value (to the company) perpolicy sold. If the company sells 20,000
policies, what is the expected profit or loss?
The expected value is $
The expected (loss/profit) is $