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3 years ago

14

The following table shows claim amounts and their probabilities for an insurance company that offers homeowners’ insurance polic

ies. Calculate the expected claim amount. That is, on average, how much will the insurance company have to pay in claims per policy holder?
$2250

$5000

$7500

$3250

1 answer:

Shtirlitz [24]3 years ago

5 0

The answer is $5000.

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Step-by-step explanation:

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$C(t) = C(0)e^{rt}$

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$C(t) = C(0)e^{rt}$

$55 = 110e^{10}$

$e^{10r} = 0.5$

Applying ln to both sides

$\ln{e^{10r}} = \ln{0.5}$

$10r = \ln{0.5}$

$r = \frac{\ln{0.5}}{10}$

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At 7 pm

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