The expected value of this policy to the insurance company is $285.00.
Using this formula
Policy expected value=Insurance policy charges-[(Probability × Claim)+(Probability × Claim)]
Let plug in the formula
Policy expected value=$1,300-{(.0041)($150,000)+(.08)($5,000)]
Policy expected value=$1,300-($615+$$400)
Policy expected value=$1,300-$1,015
Policy expected value=$285.00
Inconclusion the expected value of this policy to the insurance company is $285.00
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300,000/yr
52 weeks/yr
300,000/52 = 5,769.2 (rounded to the nearest tenth)
I think they would go to the rational numbers
Answer:
the sum of the of the square of the opposite and adjacent does not equal the hypotenuse
84/56=1.5 - it is 1% of number
1.5*100=150
Answer: 150
