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5 votes
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

1 Answer

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