30 POINTS IF YOU CAN SHOW YOUR WORK
Acasa Insurance Company offers several plans for home insu...
Mathematics, 22.05.2020 19:05 Shadowhawk681
30 POINTS IF YOU CAN SHOW YOUR WORK
Acasa Insurance Company offers several plans for home insurance.
Plan A has a $700 yearly premium with a $3,000 deductible.
Plan B has a $1,200 yearly premium with a $1,000 deductible.
Water damage (from broken pipes, overflows, etc.) results in approximately 12% of claims overall, with an average claim being $5,200. What is the expected value (loss or gain) to Acasa for every customer who chooses plan A?
A. -$1,060
B. $436
C. -$360
D. -$100
Answers: 2
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