offer an insurance policy to these two customers and offer it for the same price, what price should you charge (without any profit mark-up)?

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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Suppose Janice has a 25% chance of totaling her car (worth $13,500) this year and Sam has a 19%
chance of totaling his car ($23,700) this year. If you have a car insurance company and you want to
offer an insurance policy to these two customers and offer it for the same price, what price should
you charge (without any profit mark-up)?
Transcribed Image Text:Suppose Janice has a 25% chance of totaling her car (worth $13,500) this year and Sam has a 19% chance of totaling his car ($23,700) this year. If you have a car insurance company and you want to offer an insurance policy to these two customers and offer it for the same price, what price should you charge (without any profit mark-up)?
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