Solution-Company expected value of insurance policy

Company expected value of insurance policy

Reference no: EM132289122

Based on historical data, an insurance company estimates that a particular customer has a 3.3% likelihood of having an accident in the next year, with the average insurance payout being $1500.

If the company charges this customer an annual premium of $190, what is the company's expected value of this insurance policy?

Reference no: EM132289122

Questions Cloud

Find the probability that a randomly selected person : a. Find the probability that a randomly selected person from this population is between 67.2 and 71.2 inches tall. b. What height denotes the 95th percentile?

What value is one standard deviation below the mean : The depth of the snow in my yard is normally distributed, with a mean of 2.5 inches and a standard deviation of 0.25 inches.

Means that one unit increase in x increases : This means that one unit increase in X increases the probability of Y being 1 by exactly 9%." Briefly discuss if this is correct or not. If not correct, what's

Create suitable variable and estimate a model : Initially, you believe that gender does not play a role in salaries. Estimate this model with Experience and Class Rank as your explanatory variables

Company expected value of insurance policy : If the company charges this customer an annual premium of $190, what is the company's expected value of this insurance policy?

What will the sample variance be on average : Given the following variances for each population, what will the sample variance be on average when we compute the following formula: SS?

Physical plant at the main campus of a large state : The physical plant at the main campus of a large state university recieves daily requests to replace florecent lightbulbs. The distribution

Describe the sampling distribution : The distribution of heights of adult males has a mean of 69 inches and a standard deviation of 4 inches. A random sample of 36 adult males is selected.

Write a case study that summarises the major life themes : BESC1061 Developmental Psychology Assignment - Case Study. Write a case study that summarises the major life themes

User Account

All Pages

Company expected value of insurance policy

Reference no: EM132289122

Reference no: EM132289122

Questions Cloud

Reviews

Write a Review

Basic Statistics Questions & Answers

What is the standard error of the mean

How a log cabin was built

Sampling distribution of sample proportion

Find the probability that among 120 patients

What hypothesis test would be used to analyze given data

Confidence interval for the proportion of registered users

Find the percentage of urban households

Describing level of significance

Adults who stutter-responses to cognitive stress

Calculation of average of students test score

What was martin luther king jr age at death

What fraction of shipments will be accepted

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT