Multiple Choice
Consider an insurance policy with $15,000 worth of coverage. If there is a 10% chance the owner of the policy will file a claim for the $15,000 (and a 90% chance they will not file a claim) , a fair price for this policy is:
A) $1,000
B) $1,500
C) $13,000
D) $13,500
Correct Answer:
Verified
Correct Answer:
Verified
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