Answer:
a) Expected Value of Claims = $32,000
b) Average premium per claim, in order to break-even on claim costs
= $5,333.33
c) To make a profit of $60 per policy (i.e. a total profit of $360 ($60 x 6), it must charge:
= $5,393.33 per policy
Step-by-step explanation:
a) Data and Calculations:
Amount of Claim Probability Expected Value
$0 0.60 $0
$50,000 0.25 $12,500
$100,000 0.09 9,000
$150,000 0.04 6,000
$200,000 0.01 2,000
$250,000 0.01 2,500
Expected Cost of claims = $32,000
b) Average premium per claim, in order to break-even on claim costs
= Total Claim cost divided by number of policies
= $32,000/6 = $5,333.33
c) To make a profit of $60 per policy (i.e. a total profit of $360 ($60 x 6), it must charge:
Total Claim cost + Total profit / 6 or Average Premium plus Profit per policy =
= ($32,000 + $360)/6 or $5,333.33 + $60
= $32,360/6 or $5,393.33
= $5,393.33
Answer:
a
Step-by-step explanation:
A number that is less that 7.5 can be used as the lesser of the two consecutive integers with the sum greater than 16, but only if the number used was added with one.
I have an answer and an explanation!
ANSWER:Explanation:
<span>{Let's solve your equation step-by-step.}
</span>
<span>{Step 1: Factor left side of equation.}
</span>
{<span>Step 2: Set factors equal to 0.}
</span>
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Answer:
23
Step-by-step explanation:
6x3=18
18+5=23