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Mathematics, 08.10.2019 06:00 Alex9089435028
Apotential customer for a $60,000 fire insurance policy possesses a home in an area that, according to experience, may sustain a total loss in a given year with probability of 0.001 and a 50% loss with probability 0.01. ignoring all other partial losses, what premium should the insurance company charge for a yearly policy in order to break even on all $60,000 policies in this area?
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Apotential customer for a $60,000 fire insurance policy possesses a home in an area that, according...
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