A private pilot wishes to insure his airplane for $400,000. The insurance company estimates that a total loss will o with probability 0.006, a 50% loss with probability 0.04, and a 20% loss with probability 0.1. Ignoring all other partial losses, what premium should the insurance company charge each year to realize an average profit of $8001 The insurance company should charge $ each year. (Type an integer or a decimal. Round to the nearest dollar as needed.)

A private pilot wishes to insure his airplane for $400,000. The insurance company estimates that a total loss will o with probability 0.006, a 50% loss with probability 0.04, and a 20% loss with probability 0.1. Ignoring all other partial losses, what premium should the insurance company charge each year to realize an average profit of $8001 The insurance company should charge $ each year. (Type an integer or a decimal. Round to the nearest dollar as needed.)

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks