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An insurance company suffers a loss of $1000 per accident. Half the population is of high risk type with probability of accident being one, and
An insurance company suffers a loss of $1000 per accident. Half the population is of high risk type with probability of accident being one, and other half is low risk type with probability of accident being zero.
What is the expected loss per customer?
A) $100
B) $500
C) $750
D) $1000
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