Posted by **Melissa** on Friday, May 21, 2010 at 10:09pm.

An actuary at an insurance company estimates from exsiting data that on a $1000 policy an average 1 and 100 policyholders will file a 20000 claim. in average of 1 in 200 policyolders will file a 50000 claim in average 1 in 500 policyholders will file a 100000 claim.

a. what is the expected value to the company for each policy sold.

b. if the company sells 100000 policies can it expect a profit. explain your assumptions of this calculation.

## Answer This Question

## Related Questions

- math - An actuary at an insurance company estimates from exsiting data that on a...
- PROBABILITY - FIND THE EXPECTED PROFIT OR LOSS VALUE FOR 100,000 POLICIES: AN ...
- statistics - An auditor of Health Maintenance Services reports 40 percent of ...
- St - A manufacturer is interested in determining whether it can claim that the ...
- statistics - This table shows claims and their probablity for an insurance ...
- statistics - any state auto insurance company took a random sample of 370 ...
- window XP - Which of the following is true of the Encrypting File System (EFS)? ...
- Probability and Statistics - For questions 1- 5 use confidence intervals to ...
- Grade 12 math - Formula T= L+F/S T= time it takes to download file L= latency F...
- math - An automotive insurance company has 25,000 policyholders. The accident ...

More Related Questions