An insurance company wants to design a homeowner's policy for mid-priced homes. From data compiled by the
Question:
a. Determine the expected annual claim amount per homeowner.
b. How much should the insurance company charge for the annual premium if it wants to average a net profit of $50 per policy?
Transcribed Image Text:
0 10 50 100 200 P(X=x)| 0.95 0.045 0.004 0.0009 0.0001
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