. 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:
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Find numbers that multiply to 28 and add them to see if they add to 8
28=
1 and 28=29 not 8
2 and 14=16 not 8
4 and 7=11 not 8
that's it'
no 2 numbers
we must use quadratic formula
x+y=8
xy=28
x+y=8
subtract x fromb oths ides
y=8-x
subsitute
x(8-x)=28
distribute
8x-x^2=28
add x^2 to both sides
8x=28+x^2
subtract 8x
x^2-8x+28=0
if you have
ax^2+bx+c=0 then x=
so if we have
1x^2-8+28=0 then
a=1
b=-8
c=28
x=
x=
x=
x=
x=
there are no real numbers that satisfy this
28=
1 and 28=29 not 8
2 and 14=16 not 8
4 and 7=11 not 8
that's it'
no 2 numbers
we must use quadratic formula
x+y=8
xy=28
x+y=8
subtract x fromb oths ides
y=8-x
subsitute
x(8-x)=28
distribute
8x-x^2=28
add x^2 to both sides
8x=28+x^2
subtract 8x
x^2-8x+28=0
if you have
ax^2+bx+c=0 then x=
so if we have
1x^2-8+28=0 then
a=1
b=-8
c=28
x=
x=
x=
x=
x=
there are no real numbers that satisfy this