Question Solved1 Answer 10. [-/1 Points) DETAILS WACKERLYSTAT7 3.E.019. MY NOTES SASK YOUR TEACHER PRACTICE ANOTHER An insurance company issues a one year $1,000 policy insuring against an occurrence A that historically happens to 4 out of every 100 owners of the policy. Administrative fees are $35 per policy and are not part of the company's profit." How much should the company charge for the policy if it requires that the expected profit per policy be $607 [HINT: IF C is the premium for the policy, the company's "profit is C-35 if A does not occur, and C - 35 - 1,000 ir A does occur.) $ Need Help? Read it

NIEVYI The Asker · Probability and Statistics

Transcribed Image Text: 10. [-/1 Points) DETAILS WACKERLYSTAT7 3.E.019. MY NOTES SASK YOUR TEACHER PRACTICE ANOTHER An insurance company issues a one year $1,000 policy insuring against an occurrence A that historically happens to 4 out of every 100 owners of the policy. Administrative fees are $35 per policy and are not part of the company's profit." How much should the company charge for the policy if it requires that the expected profit per policy be $607 [HINT: IF C is the premium for the policy, the company's "profit is C-35 if A does not occur, and C - 35 - 1,000 ir A does occur.) $ Need Help? Read it
More
Transcribed Image Text: 10. [-/1 Points) DETAILS WACKERLYSTAT7 3.E.019. MY NOTES SASK YOUR TEACHER PRACTICE ANOTHER An insurance company issues a one year $1,000 policy insuring against an occurrence A that historically happens to 4 out of every 100 owners of the policy. Administrative fees are $35 per policy and are not part of the company's profit." How much should the company charge for the policy if it requires that the expected profit per policy be $607 [HINT: IF C is the premium for the policy, the company's "profit is C-35 if A does not occur, and C - 35 - 1,000 ir A does occur.) $ Need Help? Read it
See Answer
Add Answer +20 Points
Community Answer
DXDE3H The First Answerer
See all the answers with 1 Unlock
Get 4 Free Unlocks by registration

Sol rarr Let variable x be the Company's "Profit"The varriable x can takes valuesC-35 and C-35-1000 and has the following probability{:[P(x=c-35-(1000)/(100)=0.04:}],[P(y ... See the full answer