Amount of claim (to nearest $20,000) Probability $0 0.70 $20,000 0.17 $40,000 0.06 $60,000 0.04 $80,000 0.02 $100,000 0.01

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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Amount of claim (to nearest $20,000) Probability
$0 0.70
$20,000 0.17
$40,000 0.06
$60,000 0.04
$80,000 0.02
$100,000 0.01

A. Calculate the expected value?

B. How much should the company charge as an average premium so that it breaks even on its claim​ costs? 

C. How much should the company charge to make a profit of​ $50 per​ policy?

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