The premium that the insurance company should charge each year to realize an average profit of $500 is $6,900.
First step is to calculated the expected amount to pay
Expected amount=Total loss +50% loss+25% loss
Expected amount=$200,000(0.002)(1)+$200,000(0.01)(0.5)+$200,000(0.1)(0.25)
Expected amount=$400+$1,000+$5,000
Expected amount=$6,400
Second step is to calculate the premium
Premium=Expected amount+ Average profit
Premium=$6,400+$500
Premium=$6,900
Inconclusion the premium that the insurance company should charge each year to realize an average profit of $500 is $6,900.
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I think he just became fascinated mkay
The statement that is most correct is (b) In Grade 8, 17% of students liked running.
<h3>How to interpret the two-way frequency table</h3>
<u>The students that like swimming</u>
From the table, we have the following highlights
- 24% students like swimming in grade 8
- 18% students like swimming in grade 9
<u>The students that like running</u>
From the table, we have the following highlights
- 17% students like running in grade 8
- 14% students like running in grade 9
<u>The students that like volleyball</u>
From the table, we have the following highlights
- 5% students like volleyball in grade 8
- 54% students like volleyball in grade 9
When the above highlights are compared to the given options, the correct statement is (b) In Grade 8, 17% of students liked running.
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