In a given year there is a 3% chance you will get in a small accident costing around $2000 and 0.1% chance you will get in a major accident costing around $150,000 and a 96.9% chance you will not get in any accident what premium should insurance company charge if they want an average profit of $400

$475

Step-by-step explanation:

There are 3 possible accident in this question

3% chance of losing $2000

0.1% chance of losing $150,000

96.9% chance of losing $0

Then the expected value that you will lose is:

3%*  $2000  + (0.1% *  $15000) + (96.9% * $0)= $75

Profit made by subtracting the price with the lose. If the company want average profit $400, the charge should be:

average profit = premium price - average lose

premium price= average profit + average lose

premium price= $400 + $75 = $475

true

explanation:

see explanation

step-by-step explanation:

since the sequence is geometric there is a common ratio r between consecutive terms, that is

r = 4 ÷ - 2 = - 2

r = - 8 ÷ 4 = - 2

r = 16 ÷ 8 = - 2

the next term - 13 must be incorrect as it should be - 32 for the sequence to be geometric.

the first 4 terms are therefore geometric with common ratio r = - 2