Automobile Company Question

S

sparklyseptic

New member
Joined
Apr 10, 2020
Messages
2
An automobile insurance company estimates the following loss probabilities for the next year on a $25,000
sports car:

f1q13g1_5e74dd1f2cf06.jpg


Assuming the company will sell only a $500 deductible policy for this model (i.e., the owner covers the first
$500 damage), how much annual premium should the company charge in order to average $410 profit per
policy sold?
 
sparklyseptic said:
An automobile insurance company estimates the following loss probabilities for the next year on a $25,000
sports car:

f1q13g1_5e74dd1f2cf06.jpg


Assuming the company will sell only a $500 deductible policy for this model (i.e., the owner covers the first
$500 damage), how much annual premium should the company charge in order to average $410 profit per
policy sold?
Click to expand...
Please show us what you have tried and exactly where you are stuck.

Please follow the rules of posting in this forum, as enunciated at:

https://www.freemathhelp.com/forum/threads/read-before-posting.109846/#post-486520

Please share your work/thoughts about this assignment.
 
sparklyseptic said:
I have tried to solve the problem but have gotten different answers each time. I'm just trying to find the right answer since my instructor won't tell what the answer is.
Click to expand...
Since you have tried to solve it several times, please share your work for one of those times.
 
You must log in or register to reply here.
Top