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An insurance company expects 8% of its policyholders to collect claims of $1000 this year and the remaining 92% to collect no claims. What is the expected value, u, for the amount they will pay out in claims per person? μ = $ per person (in the long run)

An insurance company expects 8% of its policyholders to collect claims of $1000 this year and the remaining 92% to collect no claims. What is the expected value, u, for the amount they will pay out in claims per person? μ = $ per person (in the long run)

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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An insurance company expects 8% of its policyholders to collect claims of $1000 this year and the remaining 92% to collect no claims. What is the expected value, u, for the amount they will pay out in claims per person? μ = $ per person (in the long run)
Transcribed Image Text:An insurance company expects 8% of its policyholders to collect claims of $1000 this year and the remaining 92% to collect no claims. What is the expected value, u, for the amount they will pay out in claims per person? μ = $ per person (in the long run)
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