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Expected claim cost on policy-gs enterprises

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GS Enterprises has the following loss distribution for its product liability expenses. If an insurer offered GS a policy with a $100,000 annual deductible, what is the expected claim cost on this policy?

Loss Probability

$4,000,0000 .001

$500,0000 .01

$30,000 .1

$0 .889

Reference no: EM132509834

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