Assume that the probability of a driver getting into an accident is 8.6%, the average cost of an accident is $16,886.05, and the overhead cost for an insurance company per insured driver is $115. What

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Max Barrass asked Apr 4, 2022

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Assume that the probability of a driver getting into an accident is 8.6%, the

average cost of an accident is $16,886.05, and the overhead cost for an
insurance company per insured driver is $115. What should the driver's
insurance premium be?
A. $1442.99
B. $1276.27
C. $1565.48
D. $1166.91

Mathematics
high-school

Max Barrass asked Apr 4, 2022

by Max Barrass

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- The answer is option B. The insurance company must request a premium of $ 1095.16

Trendl answered Apr 9, 2022

by Trendl

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