Assume that the probability of a driver getting into an accident is 7.6%, the average cost of an accident is $16,412.05, and the

Question

mezya [45]

3 years ago

13

Assume that the probability of a driver getting into an accident is 7.6%, the average cost of an accident is $16,412.05, and the

overhead cost for an e company per insured driver is $105. What should be this drivers insurance premium?

Mathematics

2 answers:

Naddik [55] · Answer 1 · 2022-04-10T12:30:58+03:00

<h2>Answer:</h2>

The drivers insurance premium is:

$ 1352.3158

<h2>Step-by-step explanation:</h2>

The probability of a driver getting into an accident is 7.6%.

The average cost of an accident is $16,412.05.

This means that the expected amount that will be paid to each of the driver by the company on accident will be: 0.076×16412.05

= $ 1247.3158

Also, the overhead cost for an e company per insured driver is $105.

This means that the insurance premium of driver is:

= 105+1247.3158

= $ 1352.3158

arlik [135] · Answer 2 · 2022-04-10T10:20:56+03:00

arlik [135]3 years ago

5 0

Answer:

1,352.32

Step-by-step explanation:

If you take 7.6 and multiply it to 16,412.05 (.076)(16,412.05), you get 1,247.32. You then add the overhead cost of 105 to get 1352.32. (Apex verified too)