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expected value for the insurance company? Round your answer to two decimal places.

expected value for the insurance company? Round your answer to two decimal places.

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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You purchase car insurance for a monthly premium of $59. The insurance company knows that the average claim in any given year for your type of car is $11,900. The probability that you will get in an accident in any given year is 0.018. If you get into an accident, you have to pay a $480 deductible. For a one-year time period, what is the expected value for the insurance company? Round your answer to two decimal places. Number dollars
Transcribed Image Text:You purchase car insurance for a monthly premium of $59. The insurance company knows that the average claim in any given year for your type of car is $11,900. The probability that you will get in an accident in any given year is 0.018. If you get into an accident, you have to pay a $480 deductible. For a one-year time period, what is the expected value for the insurance company? Round your answer to two decimal places. Number dollars
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