Find out your yearly car insurance cost. If you dont have a car, find out the yearly

Question:

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.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: