Break-A-Leg Insurance Company sells a​ $500,000 insurance policy to thespians for​ self-inflicted lower-body extremity injury. The premium for the policy is​ $150 per year. If the probability that an actor actually breaks their leg and is paid​ $500,000 is​ 0.0001, compute the expected value the insurance company should expect to receive per policy sold.   The insurance company should expect to receive how much money?

Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter5: Probability: An Introduction To Modeling Uncertainty
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Problem 17P: The probability distribution for damage claims paid by the Newton Automobile Insurance Company on...
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Break-A-Leg Insurance Company sells a​ $500,000 insurance policy to thespians for​ self-inflicted lower-body extremity injury. The premium for the policy is​ $150 per year. If the probability that an actor actually breaks their leg and is paid​ $500,000 is​ 0.0001, compute the expected value the insurance company should expect to receive per policy sold.
 
The insurance company should expect to receive how much money?
 
 
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