Mathematics, 02.03.2020 17:29 jenni333

Accident records collected by an automobile insurance company give the following information: The probability that an insured driver has an automobile accident is 0.19; if an accident has occurred, the damage to the vehicle amounts to 25% of its market value with probability 0.9, 70% of its market value with probability 0.13, and a total loss with probability 0.06. What premium (in dollars) should the company charge on a $39,000 car so that the expected gain by the company is zero? (Round your answer to the nearest whole number.)

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