Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. algebra
  3. avicenna an insurance company offers five year com

Avicenna an insurance company offers five year commercial property insurance policies to small businesses If...

70.2K

Verified Solution

Question

Algebra

image

Avicenna an insurance company offers five year commercial property insurance policies to small businesses If the holder of one of these policies experience property damage in the next five years the company must pay out 24 100 to the policy holder Executives at Avicenna are considering offering these policie for 916 each Suppose that for each holder of a policy there is a 4 chance they will experience property damage in the next five years and a 96 chance they will not If the executives at Avicenna know that they will sell many of these policies should they expect to make or lose money from offering them How much To answer take into account the price of the policy and the expected value of the amount paid out to the holder Avicenna can expect to make money from offering these policies In the long run they should expect to make dollars on each policy sold Avicenna can expect to lose money from offering these policies In the long run they should expect to lose dollars on each policy sold Avicenna should expect to neither make nor lose money from offering these policies

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

Physics
1.2K views

What is the escape speed on a spherical asteroid whose radius is 700 km and whose...

General Management
1.2K views

Union Airways is adding more flights to and from its hub airport and so needs to...

General Management
1.2K views

1. A manager's activities are often analyzed and classified according to the following set of managerial...

Geometry
1.2K views

Find the point on the curve h x x2 8 that is closest to the...

Statistics
1.2K views

e probability distribution to the right the random variable X represents the ber of hits...

Accounting
1.2K views

34. Given the following information, compute net income. Cost of goods sold Income taxes Interest...

Accounting
1.2K views

Who is this quote from? there was no very great change in the...

Accounting
1.2K views

James drafts a note payable to Smith Co. and signs the note at the top...

Accounting
1.2K views

he main difference between embezzlement and larceny is? Embezzlement requires the defendant to have the...

Accounting
1.2K views

The statements of financial position of three companies are as follows: Unicycle Bicycle...

Accounting
1.2K views

Hi could you please complete all parts to the question? ...

Accounting
1.2K views

Wims, Inc., has sales of $19.7 million, total assets of $14.7 million and total debt...