An insurance policy sells for $800.Based on past data, an average of 1 in 50 policyholders will file a $10,000 claim, an average of 1 in 250 policyholders will file a $50,000 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 20,000 policies, what is the expected profit or loss? The expected value is ? (Simplify your answer.) The expected profit loss is ? (Simplify your answer.)

An insurance policy sells for $800.Based on past data, an average of 1 in 50 policyholders will file a $10,000 claim, an average of 1 in 250 policyholders will file a $50,000 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 20,000 policies, what is the expected profit or loss? The expected value is ? (Simplify your answer.) The expected profit loss is ? (Simplify your answer.)

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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