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Question: ( Statistics ) An insurance company agrees to pay the promoter of a drag race $15000 if the race has to be canceled because

Question: ( Statistics )

An insurance company agrees to pay the promoter of a drag race $15000 if the race has to be canceled because of rain. If the company's actuary feels that a fair net premium for this risk is $2400, what does this tell us about his assessment of the probability that the race will have to be canceled because of rain?

Please indicate the formula and Explain each step in detail. Thank you.

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