It will take 35 minutes to peel 14 potatoes
Hope this helps :)
Answer:
-$500
Step-by-step explanation:
The expected value of a payment from the policy is ...
$500,000 × 0.002 = $1000
Since the business pays $1500 for the policy, the expected value to the business is ...
$1000 - 1500 = -$500 . . . per year
_____
Of course, the expected value to the insurance company is $500 per year.
_____
We have computed on the basis of 1 claim per year. If we consider the possibility of multiple independent claims, then the expected payment from the insurance goes up by a factor of 1/(1 -0.002) ≈ 1.002004008016.... This has the effect of increasing the expected value by $2.00 per year to -$498.
Answer:
D
Step-by-step explanation:
The denominator is in the bottom of a fraction bar while the numerator is on the top.
