(a) Use the expected collision payment to determine the collision insurance premium that would enable the company to break even. If required, round your answers to two decimal places. If your answer is zero, enter "0". f(x) xf(x) 0.85 500 0.04 20 1000 0.04 40 3000 0.03 90 5000 0.02 100 O 8000 0.01 80 10000 0.01 100 Total 1 430 (b) The insurance company charges an annual rate of $520 for the collision coverage. What is the expected value of the collision policy for a policyholder? (Hint: It is the expected payments from the company minus the cost of coverage.) If required, enter negative value as negative number. 90.00
(a) Use the expected collision payment to determine the collision insurance premium that would enable the company to break even. If required, round your answers to two decimal places. If your answer is zero, enter "0". f(x) xf(x) 0.85 500 0.04 20 1000 0.04 40 3000 0.03 90 5000 0.02 100 O 8000 0.01 80 10000 0.01 100 Total 1 430 (b) The insurance company charges an annual rate of $520 for the collision coverage. What is the expected value of the collision policy for a policyholder? (Hint: It is the expected payments from the company minus the cost of coverage.) If required, enter negative value as negative number. 90.00
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
N2

Transcribed Image Text:Payment ($)
Probability
0.85
500
0.04
1,000
0.04
3,000
0.03
5,000
0.02
8,000
0.01
10,000
0.01
(a) Use the expected collision payment to determine the collision insurance premium that would enable the company to break even. If required, round your
answers to two decimal places. If your answer is zero, enter "0".
f(x)
xf(x)
0.85
500
0.04
20
1000
0.04
40
3000
0.03
90
5000
0.02
100
8000
0.01
80
10000
0.01
100
Total
1
430
(b) The insurance company charges an annual rate of $520 for the collision coverage. What is the expected value of the collision policy for a policyholder?
(Hint: It is the expected payments from the company minus the cost of coverage.) If required, enter negative value as negative number.
90.00
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