Question
The expected value of the motor home is $19,660 = (.02 x $3,000 + .98 x $20,000). Thus, fair insurance for the motor home would
The expected value of the motor home is $19,660 = (.02 x $3,000 + .98 x $20,000). Thus, fair insurance for the motor home would cost $340 = (.02 x $17,000), where $17,000 is the net loss from an accident.
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Introduction To Business Statistics
Authors: Ronald M. Weiers
7th Edition
978-0538452175, 538452196, 053845217X, 2900538452198, 978-1111524081
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