To determine the price of the policy

Reference no: EM13197743

The company estimates the probability of no damage to be 0.60, the probability of damage between $0 and $10,000 to be 0.25, and the probability of damage between $10,000 and $25,000 to be 0.12.

If the company wants to make a profit of $200 above the expected cost, what should be the price of the policy?

Reference no: EM13197743

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