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Based on historical data, an insurance company estimates that a particular customer has a 2.7% likelihood of having an accident in the next year, with the average insurance payout being $3300.

If the company charges this customer an annual premium of $210, what is the company's expected value of this insurance policy?

User Ben Alan
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1 Answer

6 votes

Answer:

Expected value = $115.83

User Kkmishra
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