Post a New Question

math

posted by .

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.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

More Related Questions

Post a New Question