An insurance company makes money according to earnings = p(e1)w1 + p(e2)w2, where p(e1) = 0.002641, w1 = -$25,000, p(e2) = 0.997

Question

Paul [167]

3 years ago

13

An insurance company makes money according to earnings = p(e1)w1 + p(e2)w2, where p(e1) = 0.002641, w1 = -$25,000, p(e2) = 0.997

359, and w2 = $193.08.
How much does the insurance company earn during the year from this person?

Mathematics

1 answer:

evablogger [386] · Answer 1 · 2022-08-03T18:44:00+03:00

To put it simply, what needs to be done in order to answer the question is to substitute the known values from the given to the equation that is also already in the given above,

E = (0.002641)(-$25000) + (0.997359)(193.08)

Simplifying the equation,

E = 126.545

Answer: $126.545