Based on historical data, an insurance company estimates that a particular customer has a 2.3% likelihood of having an accident in the next year, with the average insurance payout being $2500. If the company charges this customer an annual premium of $140, what is the company's expected value of this insurance policy? $
Based on historical data, an insurance company estimates that a particular customer has a 2.3% likelihood of having an accident in the next year, with the average insurance payout being $2500. If the company charges this customer an annual premium of $140, what is the company's expected value of this insurance policy? $
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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Based on historical data, an insurance company estimates that a particular customer has a 2.3% likelihood of having an accident in the next year, with the average insurance payout being $2500.
If the company charges this customer an annual premium of $140, what is the company's expected value of this insurance policy?
$
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