Multiple Choice
An insurance company will insure a $75,000 particular automobile make and model for its full value against theft at a premium of $1500 per year. Suppose that the probability that this particular make and model will be stolen is .0075. Find the premium that the insurance company should charge if it wants its expected net profit to be $2000.
A) $1437.50
B) $2551.25
C) $2562.50
D) $2062.50
Correct Answer:
Verified
Correct Answer:
Verified
Q17: In the most recent election, 19 percent
Q18: Consider a Poisson distribution with an average
Q19: The J.O. Supplies Company buys calculators from
Q20: The expected value of the discrete random
Q21: The random variable x has a hypergeometric
Q23: The probability distribution of X is <img
Q24: Consider the experiment of tossing a fair
Q25: Which of the following statements about the
Q26: Two characteristics, or assumptions, of the Poisson
Q27: An important part of the customer service