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Suppose Janice has a 25% chance of totaling her car (worth $13,500) this year and Sam has a 19% chance of totaling his car ($23,700)
Suppose Janice has a 25% chance of totaling her car (worth $13,500) this year and Sam has a 19% chance of totaling his car ($23,700) this year. If you have a car insurance company and you want to offer an insurance policy to these two customers and offer it for the same price, what price should you charge (without any profit mark-up)
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