Mathematics, 25.05.2021 14:00 benallyadam2067
After the loan is over, Jessica has the option to drop the comprehensive and collision coverage from her insurance. These cover the cost of repair or replacement if she is an accident. Jessica estimates the probability of her having an accident or having to otherwise file a claim to be
1/70 for any given month.
If she does have an accident, the average cost is $2,400. The comprehensive and collision coverage costs her $69 a month, and has a $500 deductible, which means she has to cover the first $500 of any accident herself before insurance covers the rest.
Find the expected value to Jessica for a month of the insurance
$ ?
Answers: 2
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After the loan is over, Jessica has the option to drop the comprehensive and collision coverage from...
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