Question: Find out your yearly car insurance cost If you don t
Find out your yearly car insurance cost. If you don’t have a car, find out the yearly cost for a friend or relative. Now assume you will either have an accident or not, and if you do, it will cost the insurance company $ 5000 more than the premium you pay. Calculate what yearly accident probability would result in a “break-even” expected value for you and the insurance company. Comment on whether you think your answer is an accurate representation of your yearly probability of having an accident.
Relevant QuestionsSuppose you wanted to test your extrasensory perception (ESP) ability using an ordinary deck of 52 cards, which has 26 red and 26 black cards. You have a friend shuffle the deck and draw cards at random, replacing the card ...Flip a coin 100 times. Stop each time you have done 10 flips (that is, stop after 10 flips, 20 flips, 30 flips, and so on), and compute the proportion of heads using all of the flips up to that point. Plot that proportion ...An intersection has a four-way stop sign but no traffic light. Currently, about 1200 cars use the intersection a day, and the rate of accidents at the intersection is about one every two weeks. The potential benefit of ...Suppose that there are 38 students in your class. Each day the teacher randomly selects one student to show the others how to do the previous night’s homework. Each day, all students are eligible and equally likely to be ...Give one example of how each of the following concepts has had or might have an unwanted effect on a decision or action in your daily life: a. Conservatism b. Optimism c. Forgotten base rates d. Availability
Post your question