Buying a new car can create a financial challenge
a) car insurance rates will decrease over time.
b) car payments must become part of the budget.
c) car insurance rates will be higher than renter’s insurance.
d) car payments are likely to exceed available income.

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value