Ada Fleet Company is a transport SMME which has an insured fleet of four passenger buses. The insurance policy is due for renewal, the Managing Director of the company wants to determine the MPY in preparations for renewal negotiations. The company assumes that losses have an equal chance of occurring. Bus records are as follows: 

Buses        Losses

 Liner         105 000 

Biler           260 000 

Zyder          R170 000 

Xyer             R98 000 

 Calculate the MPY using Chebyshev method and a factor of 1.05.

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To calculate the Mean Probable Loss MPY using the Cheby... View the full answer