Acasa insurance company offers several plans for home insurance.
plan a has a $700 yearl...
Mathematics, 23.01.2020 19:31 kiekie1986
Acasa insurance company offers several plans for home insurance.
plan a has a $700 yearly premium with a $3,000 deductible.
plan b has a $1,200 yearly premium with a $1,000 deductible.
the average payout by the insurance company for a fire claim is $27,000. suppose 5% of the claims were for fire damage. what would acasa's expected value (loss or gain) be per customer who chooses plan a?
-$25,300
-$1,350
$850
-$500
Answers: 2
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