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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]3 years ago
7 0
<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]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)

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