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Doss [256]
3 years ago
13

A company sells an insurance policy against losses incurred during travel for $15. 40,000 customers buy the insurance policy. Th

e policy pays the full amount claimed up till $5,000. Most policy holders claim nothing, the rest either $500 or $5,000. Each customer has the following probabilities of claiming a certain amount for damages, independent of the other customers.
Claim $0 $500 $5,000
Probability 99% 0.8% 0.2%
Estimate the probability that the company makes a positive net profit across the 40,000 contracts.
Mathematics
1 answer:
nataly862011 [7]3 years ago
8 0
The correct thing is b
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