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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First change 0.8 to a fraction which is 4/5. Then find a common denominator between 5/8, 4/5, and 3/5. The common denominator is 40. So then you multiply the numerator by the same number you multiply the denominator by. I'll do 5/8 as an example; to get 40 as your denominator multiply 8 by 5, and then multiply 5 by 5. The fraction you'll get is 25/40. The rest of the fractions are 4/5 - 32/40 and 3/5 - 24/40. Then order them either from smallest to largest (24/40, 25/40, 32/40) or largest to smallest (32/40, 25/40, 24/40).
The answer is 926 :)))
i hope this is helpful
have a nice day
Answer:
hmmmmm
Step-by-step explanation:
