you can insure a 50000 diamond for its total value by paying a premium of d dollars if the proba

Name: you can insure a 50000 diamond for its total value by paying a premium of d dollars if the probability of theft in a given year is estimated to be 001 what premium should the insurance company charge
Uploaded: 2021-12-16T10:26:48-08:00
Duration: 2 min 5 s
Channel: Ameer Said
Description: you can insure a 50000 diamond for its total value by paying a premium of d dollars if the probability of theft in a given year is estimated to be 001 what premium should the insurance company charge

Question

Mauya Mitchell · Accepted Answer

First, we need to understand what the expected gain is. The expected gain is the average amount

Question

You can insure a $50,000 diamond for its total value by paying a premium of D dollars. If the probability of theft in a given year is estimated to be 0.01; what premium should the insurance company charge if it wants the expected gain to equal $1200.

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