Post a New Question

Psydag--stat

posted by .

An insurance company insures a person's antique coin collection worth $20,000 for an annual premium of $300. If the company figures that the probability of the collection being stolen is 0.002, what will be the company's expected profit?

  • probability -

    Expected value=300-.002*20,000

  • Psydag--stat -

    Thank you very much--I too finally got this answer.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. economics

    (Insurance) Let X = R+. Consider a house owner whose house has a risk of burning down with probability 0.001. If the house burns down it is worth $0 otherwise it is worth $1 million. The owner of the house is an expected utility maximizer …
  2. Stat

    An insurance company insures a person's antique coin collection worth $20,000 for an annual premium of $300. If the company figures that the probability of the collection being stolen is 0.002, what will be the company's expected profit?
  3. Statistics

    A life insurance company sells a term insurance policy to a 21-year-old male that pays $100,000 if the insured dies within the next 5 years. The probability that a randomly chosen male will die each year can be found in mortality tables. …
  4. statistics

    This table shows claims and their probablity for an insurance company. AMOUNT OF CLAIM PROBABILITY $0 0.65 $50,000 0.25 $100,000 0.06 $150,000 0.02 $200,000 0.01 $250,000 0.01 1. Calculate the expected value?
  5. statistics

    A medical insurance policy covers a particular illness assuring a sum of $1,500,000. If the probability of the illness occurring is 0.0001 and the expected profit is $270 what is the premium that the company should charge?
  6. accounting

    A company has an insurance policy for fifty thousand dollars that is due. How is this set up when the company does not pay it in full. It is paid monthly to an insurance premium company within one year. How do we set it up on the company …
  7. Math-Stats

    An insurance company charges its policy holders an annual premium of $200 for the following type of injury insurance policy. If the policy holder suffers a "major injury" resulting in lengthy hospitalization, the company will pay out …
  8. statistics

    An insurance company charges its policy holders an annual premium of $200 for the following type of injury insurance policy. If the policy holder suffers a "major injury" resulting in lengthy hospitalization, the company will pay out …
  9. statistics

    solve this math statistic problem: an insurance company insures a person's antique coin collection worth $20,000 for an annual premium of $300. If the company figures that the probability of the collection being stolen is 0.002, what …
  10. math

    An automotive insurance company has 25,000 policyholders. The accident rate is 0.07. The number of accidents the company will have to pay out for is If the payout for each claim (after deductibles) is $8,000, the company‚Äôs total …

More Similar Questions

Post a New Question