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A lawnmower manufacturer has the following loss distribution and its annual products liability costs. Assume all loading and other expenses are all equal to zero. What is the premium for a policy that has a no deductibles but has $700,000 policy limit? P(L) L 0.984 0.010 $50,000 0.004 $250,000 0.002 $750,000 O $3,100.00 O $2,400.00 O $1,900.00 O $2,900.00 $0 O $1,300.00

A lawnmower manufacturer has the following loss distribution and its annual products liability costs. Assume all loading and other expenses are all equal to zero. What is the premium for a policy that has a no deductibles but has $700,000 policy limit? P(L) L 0.984 0.010 $50,000 0.004 $250,000 0.002 $750,000 O $3,100.00 O $2,400.00 O $1,900.00 O $2,900.00 $0 O $1,300.00

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A lawnmower manufacturer has the following loss distribution and its annual products liability costs. Assume all loading and other expenses are all equal to zero. What is the premium for a policy that has a no deductibles but has $700,000 policy limit? P(L) L 0.984 0.010 $50,000 0.004 $250,000 0.002 $750,000 $3,100.00 O $2,400.00 O $1,900.00 O $2,900.00 O $1,300.00 $0
Transcribed Image Text:A lawnmower manufacturer has the following loss distribution and its annual products liability costs. Assume all loading and other expenses are all equal to zero. What is the premium for a policy that has a no deductibles but has $700,000 policy limit? P(L) L 0.984 0.010 $50,000 0.004 $250,000 0.002 $750,000 $3,100.00 O $2,400.00 O $1,900.00 O $2,900.00 O $1,300.00 $0
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