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expeople1 [14]
3 years ago
11

8. Teddy is considering buying flood insurance. The cost of flood insurance is $400 per year. Teddy predicts

Mathematics
2 answers:
spayn [35]3 years ago
7 0

Answer:

The expected losses are $200 per year

Step-by-step explanation:

Expected payoff from flood insurance is:

income*probability of flood

$ 1000 * 0.20 = $ 200

But his insurance costs $400 per year, then he will loss: $ 400 - $ 200 = $200 per year.

adell [148]3 years ago
4 0

Answer:

A. - $200 is correct ! :)

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The initial step that must be taken before solving almost any problem is to understand what the problem is asking for us to do and what is provided to us to complete that goal.  Looking at the problem statement, we can see that we are being requested to solve for h and we are provided an expression to do so.  Let's begin solving the expression by combining like terms.

<u>Combine like terms</u>

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Just a quick explanation on what combine like terms means, it basically just means to combine the coefficients of the numbers associated with the same variables.  Like in this example we can combine h and -3h because they have have the variable h associated with them.

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<u>Divide both sides by -2</u>

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<u>Simplify the expression</u>

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