Business, 20.08.2019 18:10 spearjj

An insurance agent (interviewed in jonathan clements, "dare to live dangerously: passing on some insurance can pay off," wall street journal, july 23, 2005, d1) states, "on paper, it never makes sense to have a policy with low deductibles or carry collision on an old car." but the agent notes that raising deductibles and dropping collision coverage can be a tough decision for people with a low income or little savings. collision insurance is the coverage on a policyholder's own car for accidents where another driver is not at fault. suppose that the loss is $5 comma 200 if an old car is in an accident. during the six-month coverage period, the probability that the insured person is found at fault in an accident is startfraction 1 over 36 endfraction . suppose that the price of the coverage is $150. should a wealthy person purchase the coverage?

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An insurance agent (interviewed in jonathan clements, "dare to live dangerously: passing on some in...

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