An insurance company writes a policy to the effect that an amount of money A must be
Fantastic news! We've Found the answer you've been seeking!
Question:
An insurance company writes a policy to the effect that an amount of money A must be paid if some event E occurs within a year. Suppose that the company estimates that E will occur within a year with probability p. What should the company charge each of its customers in order that the expected profit of the company is 10 percent of A?
Posted Date: