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Mathematics, 07.12.2020 16:30 finessinsam
When all factors are taken into account, an insurance company estimates that the probability of my father making a claim for damages to his pontoon boat for $5000 is 0.1, and that the probability of the pontoon boat being totally destroyed is .005. Should that tragedy happen, the company will have to pay $15,000. The company charges my father $1000 for the insurance policy. What is the expected value of this policy to my father?
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