NMarich05 NMarich05

13-12-2022
Mathematics

contestada

Bob, a 16 year old male, is insuring his $25,000 car. An actuary estimates the probability of it becoming a total loss (100%) at 0.008, the probability of a 50% loss is 0.02, and the probability of 25% loss is 0.1. What annual premium should Allstar Insurance charge if it wants to make an annual revenue of $500?

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