What premium should insurance company charge each season

Reference no: EM13128406

A race car driver wishes to insure his car for the racing season for $50000. The insurance company estimates a total loss may occur with probability 0.002, a 50% loss with probability 0.01, and a 25% loss with probability 0.1 ignoring all other losses what premium should the insurance company charge each season to realize an average profit of $500.

Reference no: EM13128406

Questions Cloud

Find derivative from table of values : Using the table of information for differentiable functions f(x) and g(x) at x = 2 and x=3, determine the derivative below.

Word persuasive letter explaining theology and philosophy : Write that person a 700- to 1400-word persuasive letter explaining how theology and philosophy are different. Use arguments from at least one Christian source, one Muslim source, and one Jewish source.

Segregation to promote internal control : The three types of functions that normally should be segregated to promote internal control are:

What pressure will the sample exert : A sample of gas with a volume of 750 mL exerts a pressure of 98 kPa at 30 ?C.What pressure will the sample exert when it is compressed to 250 mL and cooled to -25 ?C?

What premium should insurance company charge each season : A 25% loss with probability 0.1 ignoring all other losses what premium should the insurance company charge each season to realize an average profit of $500.

Differentiation-extrema of function : Please show the how to solve the following. Please offer as much explanation as possible. Graph a function on the interval [-2,5] having the following characteristics:

Explain how should uncertainty factor into the evaluation : Assuming you desire to earn at least a 12% rate of return, should you make the investment (i.e., does the proposal have a positive net present value)? Explain how should uncertainty factor into the evaluation?

Prepare leppard journal entries : Leppard Corporation sells DVD players. The corporation also offers its customers a 2-year warranty contract. During 2012, Leppard sold 20,000 warranty contracts at $103.80 each.

Calculate the molality, molarity of ethylene glycol : An aqueous antifreeze solution is 48.5% ethylene glycol (C2H6O2) by mass. The density of the solution is 1.062 g/cm3. Calculate the molality, molarity and mole fraction of ethylene glycol

User Account

All Pages