Mathematics, 03.12.2021 04:30 agrenfroe
An insurance policy sells for $600. Based on past data, an average of 1 in 100 policyholders will file a $10,000 claim, an average of
1 in 200 policyholders will file a
$40,000 claim, and an average of 1 in 400 policyholders will file a $60,000 claim. Find the expected value to the company) per
policy sold. If the company sells 10,000 policies, what is the expected profit or loss?
The expected value is?
(Simplify your answer.)
The expected is (Profit or loss) is?
(Simplify your answer.)
Answers: 1
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An insurance policy sells for $600. Based on past data, an average of 1 in 100 policyholders will fi...
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