Posted by
**Harley** on
.

2. Jim has a 5-year old car in reasonably good condition. He wants to take out a $40,000 term (that is accident benefit) car insurance policy until the car is 10 years old. Assume that the probability of a car having and accident in theyear in which it is x years old is as follow:

x=age

5

6

7

8

9

P(accident)

0.01191

0.01292

0.01396

0.01503

0.01613

Please show work

thank you