Answer:
0.46 per donut. 46 cents
Step-by-step explanation:
5.49/12=0.4575
Rounding to the nearest cent is about 46 cents per donut.
It should be 20x because you multiply what’s on the outside (5) with what’s on the inside (4x) which Is also called distributing. :)
Answer:
-$500
Step-by-step explanation:
The expected value of a payment from the policy is ...
$500,000 × 0.002 = $1000
Since the business pays $1500 for the policy, the expected value to the business is ...
$1000 - 1500 = -$500 . . . per year
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Of course, the expected value to the insurance company is $500 per year.
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We have computed on the basis of 1 claim per year. If we consider the possibility of multiple independent claims, then the expected payment from the insurance goes up by a factor of 1/(1 -0.002) ≈ 1.002004008016.... This has the effect of increasing the expected value by $2.00 per year to -$498.
