Question

Assume 2 in every 3000 students at the local community college have to quit due to serious health issues. An insurance company offers them ​$12000 policy for ​$40a year. What is the amount the insurance company should expect to make on average on every student that​ pays?

The amount the insurance company should expect to make on average on every student that pays is ​$

Answer 1

$32

Explanation:

Multiply $40*3000 students. Subtract 2 students that might receive a $12000 policy each. Divide by 3000 students to find average payout.