THe amount does the insurance company will makeper customer , each year = $ 750 - $ 700 = $ 50 Here, the customere may be willing topay the $ 750 premium even if is more than the expected value is because the large amount of standard deviation of claim payments made per customer in a year. As this have the value of around $ 2700 so that put an serious effect if there is an emergency occur on any given person. can this be explained more?

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ANS WER The amount that the insurance company will make per customer e... View the full answer