An insurance company will insure a $220,000 home for its total value for an annual...
60.1K
Verified Solution
Link Copied!
Question
Basic Math
An insurance company will insure a $220,000 home for its total value for an annual premium of$510.The company spends $30 per year to service such a policy, and the probability of total loss for such a home in a given year is 0.001.Assuming that either total loss or no loss will occur, what is the company's expected annualgain (or profit) on each such policy?-$220$260$290$210
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: Zin AI - Your personal assistant for all your inquiries!
