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Amount of claim {to the nearest Probability The table shows claims and their $20,000} probabilities for an insurance $0 company. $20,000 $40,000 $00,000 $80,000 $100,000
Amount of claim {to the nearest Probability The table shows claims and their $20,000} probabilities for an insurance $0 company. $20,000 $40,000 $00,000 $80,000 $100,000 a. Calculate the expected value. $ b. HOW much should the company charge as an average premium so that it breaks even on its claim costs? $ c. How much should the company charge to make a prot of $50 per policy
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