2 years ago

How do I find the value of x?

1 answer:

5 0

The value of x, bring the variable to the left side and bring all the remaining values to the right side. Simplify the values to find the result.

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givi [52]

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2 years ago

olchik [2.2K]

The expected value of this policy to the insurance company is $285.00.

Using this formula

Policy expected value=Insurance policy charges-[(Probability × Claim)+(Probability × Claim)]

Let plug in the formula

Policy expected value=$1,300-{(.0041)($150,000)+(.08)($5,000)]

Policy expected value=$1,300-($615+$$400)

Policy expected value=$1,300-$1,015

Policy expected value=$285.00

Inconclusion the expected value of this policy to the insurance company is $285.00

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olga_2 [115]

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2 years ago