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Loss Probability Value of Loss Wealth None 0.955 0 800,000 Car only 0.035 40,000 760,000 Home only 0.009 280,000 520,000 Both 0.001 400,000 400,000 Calculate
Loss
Probability
Value of Loss
Wealth
None
0.955
0
800,000
Car only
0.035
40,000
760,000
Home only
0.009
280,000
520,000
Both
0.001
400,000
400,000
- Calculate a fair premium for car insurance.
- Calculate a fair premium for home insurance.
- Calculate total wealth after both insurances have been purchased.
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Differential Topology
Authors: Amiya Mukherjee
2nd Edition
3319190458, 9783319190457
