Multiple Choice
An insurance company needs to determine the annual premium required to break even on fire protection policies with a face value of $80,000.If x is the claim size on these policies and the analysis is restricted to the losses $20,000,$70,000,and $80,000,then the probability distribution of x is as shown in the table.What premium should customers be charged for the company to break even? Round your answer to the nearest dollar. 
A) $202
B) $14
C) $42,500
D) $203
E) $40,600
Correct Answer:
Verified
Correct Answer:
Verified
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