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Home Q & A Board Science-Related Homework Help Mathematics
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Izzy122 Izzy122
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4 years ago
The table shows claims and their probabilities for an insurance company.

Amount of Claim Probability
$0 0.60
$50,000 0.25
$100,000 0.09
$150,000 0.04
$200,000 0.01
$250,000 0.01


(a) Calculate the expected value.
(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 per policy?

▸ (a) $32,000 (b) $16,000 (c) 16,090

▸ (a) $32,000 (b) $16,,000 (c) 32,090

▸ (a) $32,000 (b) $32,000 (c) 32,090

▸ (a) $16,000 (b) $32,000 (c) 32,090
Textbook 
Thinking Mathematically

Thinking Mathematically


Edition: 6th
Author:
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joanametjoanamet
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4 years ago
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Izzy122 Author
wrote...

4 years ago
Thanks
novae
wrote...

Yesterday
Good timing, thanks!
jodie1
wrote...

2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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