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Mathematics, 19.06.2020 17:57 cheezloord8472
An insurance company charges $800 annually for car insurance. The policy specifies that the company will pay $1000 for a minor accident and $5000 for a major accident. If the probability of a motorist having a minor accident during the year is 0.2 and of having a major accident is 0.05 (and these events are mutually exclusive), what is the insurance company's expected profit on the policy
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