Multiple Choice
Suppose for the coming year a family has calculated its expected value for car repairs to be $3,000. The family decides to buy a car insurance policy that would cover such claims. This insurance policy would cost a total of $3,000 for the household. This insurance policy is:
A) overcharging the family and is not fair.
B) an example of a fair insurance policy.
C) undercharging the family.
D) not appropriate for the family, and they should not buy it.
Correct Answer:
Verified
Correct Answer:
Verified
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