The premium that the insurance company should charge each year to realize an average profit of $500 is $6,900.
First step is to calculated the expected amount to pay
Expected amount=Total loss +50% loss+25% loss
Expected amount=$200,000(0.002)(1)+$200,000(0.01)(0.5)+$200,000(0.1)(0.25)
Expected amount=$400+$1,000+$5,000
Expected amount=$6,400
Second step is to calculate the premium
Premium=Expected amount+ Average profit
Premium=$6,400+$500
Premium=$6,900
Inconclusion the premium that the insurance company should charge each year to realize an average profit of $500 is $6,900.
Learn more about insurance premium here:brainly.com/question/24441770
Answer:
The curve shifts to the left if the determinant causes demand to drop. That means less of the good or service is demanded at every price.
Explanation:
That happens during a recession when buyers' incomes drop. They will buy less of everything, even though the price is the same.
Answer:5/6
Explanation:
Each Coin has two possible outcomes heads or tails
if there are 3 coins and two outcomes for each coin you multiply 3 and 2 and that is a total of 6 possible outcomes
Since the question is saying it can't have more than 2 heads we subtract what we don't want with the total possible outcomes
Out of the 6 outcomes how many are there where all of the coins land on heads? Only 1
6-1=5
Out of 6 outcomes 5 of them the coins landed on 2 heads or less
5/6
The format given here is pretty confusing. Can you present it a little more organized? I think I can help you out.
