An insurance company charges Ted $1400 per year for insurance on his home. The company has predicted that there is a 10% chance
1 answer:
Answer:
The insurance company can expect to make $900 on the policy
Step-by-step explanation:
The given parameters are;
The amount Ted pays per year for insurance on his home = $1,400
The value of the insurance policy = $5000
The chance that Ted will make a claim on the policy = 10%
The expected value is given as follows
Incidence Probability Value v × p
A claim is made 0.1 $5,000 - $1,400 = -$3,600 -$360
No claim 0.9
$1,400 $1260
Expected value is $1,260 - $360 = $900
The value the insurance company can be expected to make on average on the policy is $900
You might be interested in
Answer:
Lucy sews dresses in 1 hour.
Step-by-step explanation:
Given:
Lucy sews of a dress in
hour.
She sews at constant rate.
We need to find the number of dresses she makes in 1 hour.
In hour =
dress
So in 1 hour = Number of dresses in 1 hour
By using Unitary method we get;
Number of dresses in 1 hour=
Hence Lucy sews dresses in 1 hour.
Completing the square follows the principle of taking 
and converting it into 
where d is the 'correctional number' as I like to call it - i.e. the number that converts the expanded bracket into the +c, since the expanded bracket will give us 
.
In this case, 2/2=1 so we have the first part:
.
Expanding this gives us
. We need c to be 9, so we can just add 8.
Putting this together:
Now we can solve it more easily.
Rearranging:
In this case, 2/2=1 so we have the first part:
Expanding this gives us
Putting this together:
Now we can solve it more easily.
Rearranging: