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Laszlo, Nadja, and Nandor are thinking of insuring their beautiful mansion that they share with Colin Robinson. There is a 90% probability that the mansion
Laszlo, Nadja, and Nandor are thinking of insuring their beautiful mansion that they share with Colin Robinson. There is a 90% probability that the mansion will prevail in good condition and they will only incur $200 in maintenance costs. However there is a 10% probability of a fire, in which case the trio will incur $20,000 in restoration expenses. If an insurance company charged theman actuarially fair premium, how much would Laszlo, Nadja, and Nandor pay for the mansion insurance?
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