# Question Solved1 Answer10. [-/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
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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