Business, 15.05.2021 04:10, ashley352

An insurance company offers two accident policies. Policy A has a premium of $2,000 with a deductible of $800. Policy B has a premium of $2,400 with a deductible of $200. The probability of an accident costing more than $800 in a given year is 15%. Assume a person has at most one accident a year and no accidents costing less than $800. Complete each statement. a. The annual expected cost to the owner for Policy A is $
b. The annual expected cost to the owner for Policy B is $
c. Policy has the lesser annual expected total cost to owner.

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An insurance company offers two accident policies. Policy A has a premium of $2,000 with a deductibl...