An insurance policy is written to cover damage to a luxury sports car. The amount of damage is uniformly distributed between $0 and $39000. In order to decrease the in- surance premium, the insurance company de- cides to charge an ordinary deductible, d, so that the expected insurance payment with the deductible is 61 % of the expected insurance payment without the deductible. Determine the value of the deductible, d. 1. $8113 2. $8967 3. $8540 4. $7686 5. $7259

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
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An insurance policy is written to cover
damage to a luxury sports car. The amount
of damage is uniformly distributed between
$0 and $39000. In order to decrease the in-
surance premium, the insurance company de-
cides to charge an ordinary deductible, d, so
that the expected insurance payment with the
deductible is 61 % of the expected insurance
payment without the deductible. Determine
the value of the deductible, d.
1. $8113
2. $8967
3. $8540
4. $7686
5. $7259
Transcribed Image Text:An insurance policy is written to cover damage to a luxury sports car. The amount of damage is uniformly distributed between $0 and $39000. In order to decrease the in- surance premium, the insurance company de- cides to charge an ordinary deductible, d, so that the expected insurance payment with the deductible is 61 % of the expected insurance payment without the deductible. Determine the value of the deductible, d. 1. $8113 2. $8967 3. $8540 4. $7686 5. $7259
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