Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. an insurance company needs to determine the annual

An insurance company needs to determine the annual premium required to break even on fire...

70.2K

Verified Solution

Question

Accounting

An insurance company needs to determine the annual premium required to break even on fire protection policies with a face value of $80,000. If x is the claim size on these policies and the analysis is restricted to the losses $20,000,$70,000, and $80,000, then the probability distribution of x is as shown in the table. What premium should customers be charged for the company to break even? Round your answer to the nearest dollar.
\table[[x,0,20,000,70,000,80,000],[P(x),0.9950,0.0031,0.0011,0.0008]]
a) $202
b) $14
c) $42,500
d) $203
e) $40,600
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

please list current issues or any topics in the field of Life-Span Development.  It needs to be...

General Management
1.2K views

Search the web for "Project Lessons Learned". Record how lessons learned were used to inform projects. How does...

Biology
1.2K views

Why are model organisms such as Drosophila melanogaster especially useful for studies on genes involved...

Physics
1.2K views

3 In a particular scene of a science fiction movie a UFO is flying horizontally...

Physics
1.2K views

parallel currents are directed so that one is out of the page and the other...

Statistics
1.2K views

A golf association requires that golf balls have a diameter that is 1 68 inches...

Calculus
1.2K views

Question 1 15 points Find the general solution of the following differen equation on the...

Algebra
1.2K views

Rectangle J K L M shown on the grid is the image of rectangle JKLM...

Accounting
1.2K views

and had deductions botaling $6380. Find her gross income, adusted gress income, and taxble income....

Accounting
1.2K views

Please see the directions on page 3 for preparing the solution to the problem. Pitt...

Accounting
1.2K views

What is Endorsement Of Bill? A. Extra days following the due date of...

Accounting
1.2K views

Following up on bad news in writing is importa O promote good relations formally confirm...