Mathematics, 04.06.2020 14:01 ariellllllllllllllll

An insurance company offers three policy options. The probability a car will be damaged
in a given year is 5%, and if a car is damaged,
the cost of the repairs will be $1000. Which
option has the least expected annual cost for
the car owner? Explain.

Insurance Policy Options

Annual. Deductible
(A) 900. (A) 0
(B) 800. (B) 400
(C) 700. (C) 1000

Answers: 3

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An insurance company offers three policy options. The probability a car will be damaged
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