kaffolter25
30.07.2020 •
Mathematics
Based on historical data, an insurance company estimates that a particular customer has a 2.6% likelihood of having an accident in the next year, with the average insurance payout being $1600. If the company charges this customer an annual premium of $110, what is the company's expected value of this insurance policy?
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Ответ:
$68.4
Step-by-step explanation:
Given: Annual Premium = $110
Average insurance payout = $1600
Likelihood of having an accident= 2.6% = 0.026 [we divide perecnt by 100 to convert it into decimal]
Then, Expected value = (Annual Premium) - (Likelihood of having an accident) x (Average insurance payout )
= $110 - (0.026) x ($1600)
= $(110-41.6)
= $68.4
Hence, the company's expected value of this insurance policy : $68.4
Ответ:
C
Step-by-step explanation:
Did the test. Got i right