An insurance policy sells for $1200. Based on past data, an average of 1 in 100 policyholders will file a $20,000 claim, an average of 1 in 250 policyholders will file a $40,000 claim, and an average of 1 in 400 policyholders will file an $80,000 claim. Find the expected value (to the company) per policy sold. If the company sells 30,000 policies, what is the expected profit or loss? The expected value is $ (Simplify your answer.) C

An insurance policy sells for $1200. Based on past data, an average of 1 in 100 policyholders will file a $20,000 claim, an average of 1 in 250 policyholders will file a $40,000 claim, and an average of 1 in 400 policyholders will file an $80,000 claim. Find the expected value (to the company) per policy sold. If the company sells 30,000 policies, what is the expected profit or loss? The expected value is $ (Simplify your answer.) C

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter10: Sequences, Series, And Probability

Section: Chapter Questions

Problem 35T

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