Question
9.Use the following information to answer questions 9.1-9.4. Round to two decimal placeswhen calculating your answer.(4 points) Happy Time Day Camp has the following distribution
9.Use the following information to answer questions 9.1-9.4. Round to two decimal placeswhen calculating your answer.(4 points)
Happy Time Day Camp has the following distribution for its annual liability costs:
| Loss = | $2,000,000 | with probability .0001 |
| $100,000 | with probability .001 | |
| $5,000 | with probability .1 | |
| $0 | with probability .8989 |
9.1. What are the expected claim costs for Happy Time?
9.2. If an insurer offered Happy Time a policy with 50% coinsurance, what are the expected claim costs on this policy?
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Foundations Of Personal Finance
Authors: Sally R. Campbell, Robert L. Dansby
9th Edition
1619603578, 9781619603578
