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Business, 26.08.2019 20:30 Asantetaedog8934
For an auto insurance company, the average cost of collision claims is $500 per year for careful drivers and $3000 per year for poor drivers. the drivers are risk neutral and know whether they are careful or poor, but the insurance company only knows that 15% of drivers are poor. what is the insurance company's breakeven price for the collision insurance? a. $425 per year b. $450 per year c. $875 per year d. $2,625 per year
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