ing to get car insurance, with maximum coverage of 136 thousand USD. Let's model the probability of losses over the year as a discrete distribution, as follows: 1 K: 10% 5 K: 2% 10 K: 1% 50 K: 0.5% 136 K: 0.1% If the insurance company wants a 10% premium over expected
ing to get car insurance, with maximum coverage of 136 thousand USD. Let's model the probability of losses over the year as a discrete distribution, as follows: 1 K: 10% 5 K: 2% 10 K: 1% 50 K: 0.5% 136 K: 0.1% If the insurance company wants a 10% premium over expected
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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You are looking to get car insurance, with maximum coverage of 136 thousand USD. Let's model the probability of losses over the year as a discrete distribution, as follows:
1 K: 10%
5 K: 2%
10 K: 1%
50 K: 0.5%
136 K: 0.1%
If the insurance company wants a 10% premium over expected loss, how much will you have to pay for the policy?
Hint: find the
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