What is the expected value of the cost of of claims on a males drivers policy?
Note: number of drivers is 9634 number of claims is 977 and the average cost per claim is 6108 euro
To calculate the expected value of the cost of claims on a male driver's policy, we need to multiply the number of claims by the average cost per claim.
Step 1: Calculate the product of the number of claims and the average cost per claim.
- Number of claims: 977
- Average cost per claim: 6108 euros
- Product = 977 * 6108 = 5,970,396 euros
Therefore, the expected value of the cost of claims on a male driver's policy is 5,970,396 euros.