What should be his insurance premium for the next year

Assignment Help Basic Statistics

Reference no: EM131028041

For simplicity, let us assume that there are two kinds of drivers. The safe drivers, who are 70% of the population, have probability .1 of causing an accident in a year. The rest of the population are accident makers, who have probability .5 of causing an accident in a year. The insurance premium is $400 times one's probability of causing an accident in the following year. A new subscriber has an accident during the first year. What should be his insurance premium for the next year?

Reference no: EM131028041

Questions Cloud

Explain a minimum of eight different publics : Imagine you have just been hired as a public relations practitioner for McDonalds restaurants in Wisconsin, Minnesota, and in Mexico. After listing each public, explain why that public should be considered. In order to receive full credit for this qu..

Leraning experiences while completing rap project : In this brief report I have discussed different things about my leraning experiences while completing RAP project. In the first section I have discussed what learning I have achieved from the meetings held with my respected metnor.

Identify and assess the value of space missions to comets : Assignment Instructions: Using information from the textbook and the internet, research space missions to comets. Identify and assess the value of space missions to comets

What should be his insurance premium for the next year : The insurance premium is $400 times one's probability of causing an accident in the following year. A new subscriber has an accident during the first year. What should be his insurance premium for the next year?

Discussion form the book is ethics and conduct of business : A whistle- blower accepts a deal . As the head of corporate audit for a major pharmaceutical Company. I was involved in the lengthy approval process that the fad requires before a new drugs can be brought to market. The photocopies provided evidence ..

Resulted in information overload among staff : KShop has resulted in information overload among staff. What operational measures would you suggest to overcome such challenges?

Growing trend of increased collaboration among competitors : Share your thoughts on the following in approximately 250 words: There is a growing trend of increased collaboration among competitors. List the benefits and drawbacks of this practice.

Usually there is a line for preferred customers : Consider boarding an aircraft on one of the major airlines. Usually there is a line for "preferred customers”. You know, those for military, then those with difficulties boarding, those with small children, first class, business class, platinum class..

User Account

All Pages