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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
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4 years ago
Good timing, thanks!
hmonier
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Yesterday
Thanks
njn;l
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2 hours ago
Just got PERFECT on my quiz
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