Answered step by step

Verified Expert Solution

Link Copied!

Question

...

1 Approved Answer

Posted on Jun 19, 2024

An car insurance company determined the likelihood of a policy having an accident and the average payout for each level of accident. The results are

An car insurance company determined the likelihood of a policy having an accident and the average payout for each level of accident. The results are given in the chart below. Type of Amount of Probability Accident claim No Accident 0.72 $0 Minor /Fender 0.21 $5,000 Bender Medium Crash 0.05 $12,000 Major Accident 0.02 $52,000 Find the Expected Value of a single policy and explain what that value means. Edit View Insert Format Tools Table 12pt v Paragraph B I U A BY Ty

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

9781292016924

Students also viewed these Mathematics questions

Question

2. From the perspective of a child-care provider: How would you encourage childrens language abilities at the different stages of development?

Answered: 1 week ago

Question

★★★★★

Consider the production cost information for Santiago's Salsa in Problem 1-1. The company is currently producing and selling 325,000 jars of sales annually. The jars sell for $5.00 each. The company...

Answered: 1 week ago

Question

★★★★★

Your brother, who is 6 years old, just received a trust that will be worth $23,000 when he is 21 years old. If the fund earns 0.10 interest compounded annually, what is the value of the fund today?

Answered: 1 week ago

Question

★★★★★

The Fancy Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 24 percent. Assume all sales revenue is...

Answered: 1 week ago

Question

★★★★★

Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow Sales Net operating income Average operating assets Required:...

Answered: 1 week ago

Question

★★★★★

3. Construct the shear force and bending moment diagrams for the beam shown below. 20 kips 12 kips 1.5 kips/ft B C E D 6ft 8 ft 10 ft- -8 ft-

Answered: 1 week ago

Question

★★★★★

home seeker lindsay wants to increase her credit score so she can qualify for a conventional loan at a lower interest rate. To do this, Lindsay needs to focus on several factors that go into...

Answered: 1 week ago

Question

★★★★★

Most married couples view the early years of marriage as O deeply satisfying O the most stressful period of their relationship O a "trial period," to see if they want to stay together confusing, and...

Answered: 1 week ago

Question

★★★★★

A bank sells a "three against six" $3,000,000 FRA for a three-month period beginning three months from today and ending six months from today. The purpose of the FRA is to cover the interest rate...

Answered: 1 week ago

Question

★★★★★

Early Historical Development of Applied Behavior Analysis In 1913, John B. Watson was the first American psychologist to call himself a "behaviorist." From 1913 to 1974, a series of events and...

Answered: 1 week ago

Question

★★★★★

The purpose of group assignment 5 is to use a risk register template to create a risk register for a project case. Use the attached risk register template to create your risk register. You will need...

Answered: 1 week ago

Previous Question Next Question