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8. (3 marks) An insurance company needs to know how much to charge for a $100,000 policy insuring an event against cancellation due to inclement

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8. (3 marks) An insurance company needs to know how much to charge for a $100,000 policy insuring an event against cancellation due to inclement weather. The probability of inclement weather during the time of event is assessed as 2 in 100. The value of the yearly premium such that the expected gain for insurance company will equal to $500 is

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