1. Trust is an insurance company and it has 10,000 cars insured for cash accident. The company’s record for the past 10 years shows that on average 3% of the cars have cashed each year.

Based on the given information

1. Compute the expected number of cars to be cashed per year?
2. What is the objective risk of trust company?
3. Assume that Birr 500,000 is the amount of compensation payment trust will cover for the insured if accident happened, what is the maximum and minimum amount of birr trust company is expected to pay?

Answer rating: 100% (QA)

a Expected number of cars to be cashed per year 10000 X 3 300 b ... View the full answer