An insurance company has estimated, using previous data that, during a year, an insured person has a

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An insurance company has estimated, using previous data that, during a year, an insured person has a probability p of making a claim worth x thousands of dollars

(i.e. all claims are of a fixed amount), and probability 1 − p of making no claims.

What is the annual premium the company should charge per person so that the company’s expected annual profit is $100 for each person insured?

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Introduction To Probability Volume 2

ISBN: 9781118123331

1st Edition

Authors: Narayanaswamy Balakrishnan, Markos V. Koutras, Konstadinos G. Politis

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Question Posted: Sep 19, 2024 07:04 AM

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An insurance company has estimated, using previous data that, during a year, an insured person has a

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Introduction To Probability Volume 2

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