How can an insurance company make a profit by taking in premiums and making payouts? the value of the premiums the company takes in is higher than the value of the payouts it makes. the value of the premiums the company takes in is equal to the value of the payouts it makes. the company only makes payouts from a pool of funds, not from individual premiums. the company issues its policies to individuals who are unlikely to require payouts.

An insurance make a profit by:

The value of the premiums the company takes in is higher than the value of the payouts it makes.

Step-by-step explanation:

Insurance companies  earn profit from short-term investment of the premium money they collect as premiums but the payout or claims of services are made  are paid several months later ways.

Insurance companies realize profits by setting premium levels that are higher than might be necessary.

Hence, the correct answer is:

The value of the premiums the company takes in is higher than the value of the payouts it makes.

overpriced

step-by-step explanation:

for this case we have by definition, if two lines are perpendicular, then the product of their slopes is -1.

then, given the following line:

so,

we are looking for m_ {2}:

then, the line is given by:

we find "b" replacing the given point:

finally, the equation is:

option c