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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Answer:
5.98
Step-by-step explanation:
Answer:
The monthly percentage rate would be 1.6%
Step-by-step explanation:
Given,
Finance charge = $ 85.50,
Amount of bill in this month = $ 5,343.75,
Hence, the monthly rate of percentage




= 1.6 %
i.e. OPTION A would be correct.
Answer:The whole numbers are the numbers 0, 1, 2, 3, 4, and so on (the natural numbers and zero). Negative numbers are not considered "whole numbers." All natural numbers are whole numbers, but not all whole numbers are natural numbers since zero is a whole number but not a natural number.
Step-by-step explanation: