There were about 126 million households and 383,974 residential fires in the United States in 2017. Therefore,
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There were about 126 million households and 383,974 residential fires in the United States in 2017. Therefore, households faced a 0.30% chance of a fire in a year. You are looking at purchasing renters insurance that costs $100 a year and provides you with $20,000 a year in coverage in the event of a fire. Is this policy actuarially fair? Would you buy the policy? Why or why not?
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Related Book For
Principles Of Economics
ISBN: 9781319330156,9781319419769
2nd Edition
Authors: Betsey Stevenson, Justin Wolfers
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