An insurance company writes a policy to the effect that an amount of money must be paid
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An insurance company writes a policy to the effect that an amount of money must be paid if some event occurs within a year. If the company estimates that will E occur within a year with probability p, what should it charge the customer in order that its expected profit will be 10 percent of A?
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A probability of 0 means that the event will not happen For example if the chance of being involve...View the full answer
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