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In: Statistics and Probability

An insurance policy sells for ​$600. Based on past​ data, an average of 1 in 125...

An insurance policy sells for ​$600. Based on past​ data, an average of 1 in 125 policyholders will file a ​$15,000 ​claim, an average of 1 in 100 policyholders will file a ​$30,000 ​claim, and an average of 1 in 500 policyholders will file a ​$70,000 claim. Find the expected value​ (to the​ company) per policy sold. If the company sells 30,000 ​policies, what is the expected profit or​ loss?The expected value is $____. (Simplify your answer.) The expected (loss or profit) is $ _____. (Simplify your answer.)

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orchestra answered 2 years ago
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