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A company issues an insurance policy that pays 51000 if event A occurs. The historical data implies that event A occurs with probability 0.05. The
A company issues an insurance policy that pays 51000 if event A occurs. The historical data implies that event A occurs with probability 0.05. The company is forced to charge an administrative fee of S1 5 per policy as part of the operating cost. How much should the company charge for the policy if it requires that the expected prot per policy be $60? Select O n e: O a. 147 O b. 155 O c. 171 C d. 149 C) e. 125
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