. An insurance company offer contracts for a certain peril. In a contract period, which is 6 months, the following payoffs can o
ccur: payoff Prob. Of loss 15000 0.015 12000 0.023 8000 0.028 6000 0.035 Find the average payoff per contract in a contract period. If the company has to cover its operating cost which is a 12% overhead and make a 4% profit what should be the yearly premium which must charge for each contract? What is the probability that a contract will incur losses not exceeding $9,200 during a contract period?
1 answer:
You might be interested in
Answer:
--- Slope intercept
--- Standard form
Step-by-step explanation:
Given
The attached linear graph
Required
The equation
Select any two points on the line
Next, calculate the slope (m)
So, we have:
The slope intercept is then calculated using:
So, we have:
Multiply through bu 4
Subtract 3x from both sides
--- Standard form
Given equation is:
Where T is the total cost; $36 is the entry fee per person and $60 is the one time bus parking fee.
As given, the bus holds up to 40 people, so let the total number of people be represented by 'x'
The bus holds up to 40 people so 'x' is either less than 40 or equal to 40.
Or this can be written as :
Hence, the domain will lie between 0 and 40.
So option C : 0≤ x≤ 40 is the answer.