Find the Expected Value

Multiple Choice

Find the expected value.
-An insurance policy sells for $750. Based on past data, an average of 1 in 80 policyholders will file a $10,000 claim, an average of 1 in 140 policyholders will file a $20,000 claim, and an average of 1 in
200 policyholders will file a $50,000 claim. What is the expected value to the company per policy
Sold?

A) $232
B) $518
C) $258
D) $262