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Mathematics, 19.04.2021 04:40 kmcpig
You decide to take out an insurance policy that will
cover your home if an earthquake were to occur.
The policy is $350 per year. In the case of an earthquake, the insurance company will repay you $225,000. The chances of an earthquake in your area is 0.02.
What is the expected value?
$4,150.00
0 $3,025.00
0 $-1,250.00
$-350.00
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