Question
Danielle has an insurance policy with a premium of $75 per month. In September she is in an accident and receives a bill worth $2990
Danielle has an insurance policy with a premium of $75 per month. In September she is in an accident and receives a bill worth $2990 for the repair of her own property. Her deductible is $250 and her coverage limit is $5000. Assume Danielle has a 4% chance of an accident each month.
What is the expected value Danielle would reserve each month is she self-insured?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
