An insurance company expects 14% of its policyholders to collect claims of $300 this year and the remaining 86% to collect no claims. What is the expected value, ?, for the amount they will pay out in claims per person? ? = $ per person (in the long run)
An insurance company expects 14% of its policyholders to collect claims of $300 this year and the remaining 86% to collect no claims. What is the expected value, ?, for the amount they will pay out in claims per person? ? = $ per person (in the long run)
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 2E
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An insurance company expects 14% of its policyholders to collect claims of $300 this year and the remaining 86% to collect no claims. What is the
? = | $ per person (in the long run) |
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