(12pts) acasa insurance company offers several plans for home insurance.
plan a has a $700 yea...
Mathematics, 20.09.2019 19:00, isabella4141
(12pts) acasa insurance company offers several plans for home insurance.
plan a has a $700 yearly premium with a $3,000 deductible.
plan b has a $1,200 yearly premium with a $1,000 deductible.
water damage (from broken pipes, overflows, etc.) results in approximately 12% of claims overall, with an average claim being $5,200. what is the expected value (loss or gain) to acasa for every customer who chooses plan a?
a) -$1,060
b) $436
c) -$360
d) -$100
Answers: 1
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