c) If an insurance policy cost £800.Based of past research i An average of 1 in 50 people will file a claim of £10000. ii. an average of 1 in 100 people will file a claim of £20000 and i An average of 1 in 250 people will file a claim of £50000. What is expected value to the company per policy sold? And when the company sells 10,000 policies what is the expected profit or loss?

A First Course in Probability (10th Edition)
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c) If an insurance policy cost £800.Based of past research
An average of 1 in 50 people will file a claim of £10000.
ii.
an average of 1 in 100 people will file a claim of £20000 and
ii.
An average of 1 in 250 people will file a claim of £50000.
i.
What is expected value to the company per policy sold? And when the company sells 10,000 policies
what is the expected profit or loss?
Transcribed Image Text:c) If an insurance policy cost £800.Based of past research An average of 1 in 50 people will file a claim of £10000. ii. an average of 1 in 100 people will file a claim of £20000 and ii. An average of 1 in 250 people will file a claim of £50000. i. What is expected value to the company per policy sold? And when the company sells 10,000 policies what is the expected profit or loss?
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