Mathematics, 05.04.2022 01:50 fatherbamboo
An insurance policy sells for $800. Based on past data, an average of 1 in 50 policyholders will file a $15,000 claim, an average of 1 in 100 policyholders will file a
$30,000 claim, and an average of 1 in 400 policyholders will file a $70,000 claim. Find the expected value (to the company) per policy sold. If the company sells 20,000policies, what is the expected profit or loss?
The expected value is $
The profit is $
Answers: 1
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An insurance policy sells for $800. Based on past data, an average of 1 in 50 policyholders will fil...
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