Suppose That,for the Coming Year,a Family Has Calculated Its Expected

Multiple Choice

Suppose that,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.