Jim has a 5-year-old car in reasonably good condition. He wants to take out a $20,000 term (that is, accident benefit) car insurance policy until the car is 10 years old. Assume that the probability of a car having an accident in the year in which it is x years old is as follows: x = age 5 6 7 8 9 P(accident) 0.01182 0.01282 0.01386 0.01513 0.01602 Jim is applying to a car insurance company for his car insurance policy. If the car insurance company wants to make a profit of $700 above the expected total losses of $1393, how much should it charge for the policy? Group of answer choices $701 $693 $713 $703 $705
Jim has a 5-year-old car in reasonably good condition. He wants to take out a $20,000 term (that is, accident benefit) car insurance policy until the car is 10 years old. Assume that the probability of a car having an accident in the year in which it is x years old is as follows: x = age 5 6 7 8 9 P(accident) 0.01182 0.01282 0.01386 0.01513 0.01602 Jim is applying to a car insurance company for his car insurance policy. If the car insurance company wants to make a profit of $700 above the expected total losses of $1393, how much should it charge for the policy? Group of answer choices $701 $693 $713 $703 $705
Chapter8: Sequences, Series,and Probability
Section: Chapter Questions
Problem 41CT: On a game show, a contestant is given the digits 3, 4, and 5 to arrange in the proper order to form...
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Question
Jim has a 5-year-old car in reasonably good condition. He wants to take out a $20,000 term (that is, accident benefit) car insurance policy until the car is 10 years old. Assume that the probability of a car having an accident in the year in which it is x years old is as follows:
x = age |
5 |
6 |
7 |
8 |
9 |
P(accident) |
0.01182 |
0.01282 |
0.01386 |
0.01513 |
0.01602 |
Jim is applying to a car insurance company for his car insurance policy. If the car insurance company wants to make a profit of $700 above the expected total losses of $1393, how much should it charge for the policy?
Group of answer choices
$701
$693
$713
$703
$705
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