Solved

A Fair Insurance Policy Is One Whose Premium

Question 158

Multiple Choice

A fair insurance policy is one whose premium:


A) is zero.
B) allows the insurance company to profit.
C) equals the expected value of the claims.
D) is higher as the probability of a claim decreases.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q153: The expected value of a random variable

Q154: Domingo has a total wealth of $500,000

Q155: (Scenario: Used-Car Market)Use Scenario: Used-Car Market.The expected

Q156: If there is a 50% probability that

Q157: Use the following to answer question: <img

Q159: Two possible events are independent if they

Q160: Rhonda would like a better bicycle,and she

Q161: Use the following to answer question: <img

Q162: Use the following to answer question: <img

Q163: You insure your car against theft.Consequently,you rarely