The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance follows.
Payment ($) Probability
(a) Use the expected collision payment to determine the collision insurance premium that would enable the company to break even on the policy.
(b) The insurance company charges an annual rate of $520 for the collision insurance. What is the expected value of the collision policy for a policyholder? (Hint: It is the expected payments from the company minus the cost of the coverage). Why does a policyholder purchase a collision policy with this expected value?
i have no idea how to approach this!
Recently Asked Questions
- College chums Hannah Baltzan and Tyler Phillips are working on opening a third espresso drive-through stand in Highlands Ranch, Colorado, called Brewed
- Comprehension passage and answers on hesi a2 on Glass, All the jazz, Mr. Roger , A bit about bicycle, changing time, lightning, rain forest, Isaac Asimov and
- HOW IS SBIRT EFECTIVE ON LATINO YOUTH? AND HOW EEFECTIVE IS IT