Mathematics, 24.04.2020 02:26 michael1498
Student Life Insurance Company wants to offer an insurance plan with a maximum claim amount of $4,500 for dorm students to cover theft of certain items. Past experience suggests that the probability of a maximum claim is .04. What premium should be charged if the company wants to make a profit of $60 per policy? Assume any student who files a claim files for the maximum amount and there is no deductible.
Answers: 3
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