Question
FIND THE EXPECTED PROFIT OR LOSS VALUE FOR 100,000 POLICIES:
AN INSURANCE POLICY SELLS FOR $625. BASED ON PAST DATA, AN VERRAGE OF 1 IN 100 POLICY HOLDESWILL FILE $8000 claim, nd average of 1 in 250 policholders will file a $10,00 claim,and an average o 1 in 500 policy holders wil filea $30,000 clam. lst the appropriae forula, then compute your answer.
AN INSURANCE POLICY SELLS FOR $625. BASED ON PAST DATA, AN VERRAGE OF 1 IN 100 POLICY HOLDESWILL FILE $8000 claim, nd average of 1 in 250 policholders will file a $10,00 claim,and an average o 1 in 500 policy holders wil filea $30,000 clam. lst the appropriae forula, then compute your answer.