Based on an insurance company's past data, each year an average of 1/90 policy holders make a claim of $250, 1/100 policy holders make a claim of $12,000, and 1/650 make a claim of $29,000
What would the insurance company have to charge per policy-holder to break even? (i.e., what the premium would have to be in order to have an expected profit of zero.) Round to the nearest dollar.
A vehicle insurance policy sells for $450 annually. What is the expected profit or loss for the company per policy-holder over the course of the year? Round to the nearest dollar.
If the company sold 650 policies what would the overall expected profit or loss be?Round to the nearest dollar and do not use commas