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5 votes
The following table shows claim amounts and their probabilities for an insurance company that offers homeowners’ insurance policies. Calculate the expected claim amount. That is, on average, how much will the insurance company have to pay in claims per policy holder?

$2250

$5000

$7500

$3250

The following table shows claim amounts and their probabilities for an insurance company-example-1
User Craq
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1 Answer

3 votes
the answer is $5000.
User Skyllet
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