An insurance policy sells for $1200. Based on past data, an average of 1 in 100 policyholders will file a $10,000 claim, an average of 1 in 250 policyholders will file a $50,000 claim, and an average of 1 in 500 policyholders will file a $70,000 claim. Find the expected value (to the company) per policy sold. If the company sells 20,000 policies, what is the expected profit or loss? Question content area bottom Part 1 The expected value is $enter your response here. (Simplify your answer.) Part 2 The expected ▼ profit loss is $enter your response here. (Simplify your answer.)
An insurance policy sells for $1200. Based on past data, an average of 1 in 100 policyholders will file a $10,000 claim, an average of 1 in 250 policyholders will file a $50,000 claim, and an average of 1 in 500 policyholders will file a $70,000 claim. Find the expected value (to the company) per policy sold. If the company sells 20,000 policies, what is the expected profit or loss? Question content area bottom Part 1 The expected value is $enter your response here. (Simplify your answer.) Part 2 The expected ▼ profit loss is $enter your response here. (Simplify your answer.)
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
An insurance policy sells for
$1200.
Based on past data, an average of 1 in
100
policyholders will file a
$10,000
claim, an average of 1 in
250
policyholders will file a$50,000
claim, and an average of 1 in
500
policyholders will file
a
$70,000
claim. Find the 20,000
policies, what is the expected profit or loss?Question content area bottom
Part 1
The expected value is
$enter your response here.
(Simplify your answer.)
Part 2
The expected
is
▼
profit
loss
$enter your response here.
(Simplify your answer.)
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