Apotential customer for a $60,000 fire insurance policy possesses a home in an area that, according to experience, may sustain a total loss in a given year with probability of 0.001 and a 50% loss with probability 0.01. ignoring all other partial losses, what premium should the insurance company charge for a yearly policy in order to break even on all $60,000 policies in this area?

  $360

Step-by-step explanation:

The expected loss in a year is ...

  0.001 × $60,000 + 0.01 × (50%·$60,000)

  = $60 + 300

  = $360

In order to break even, the company should charge $360 per year.

$360

Step-by-step explanation:

A potential customer for a $60,000 fire insurance policy possesses a home in an area that, according to experience, may sustain a total loss in a given year with probability of 0.001 and a 50% loss with probability 0.01. Ignoring all other partial losses, the insurance company should charge $360 for a yearly policy in order to break even on all $60,000 policies in this area.

the answer is two. hope this !

d) by the cross product property, ab^2 = bc multiplied by ad

step-by-step explanation:

we are given

in the given triangle abc

angle a is 90° and segment ad is perpendicular to segment bc

we can see that

triangle(abc) and triangle(abd) are similar because they have common side and same angle (90 degree)

so, triangles(abc) and abd are similar

since, they are similar

so, the ratio of their sides must be equal

we get

now, we can cross multiply

and we get

so, this could be step to prove it