An automotive insurance company has 25,000 policyholders. The accident rate is 0.07.

Question

The number of accidents the company will have to pay out for is

If the payout for each claim (after deductibles) is $8,000, the company’s total payouts will amount to $

If the company wants to keep a profit margin of 8%, the premium it must charge is $

The company can set aside a maximum amount of $ for this year’s investments.

Answer 1

o;u