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Take lett Bonun Practice x Secure l httpslibbleannucaeduwwebappsNassessment/takeMaunchispaoourse assessment id .6222S.18course ide 43834.1&content.ida; 856549.18stepianul Developmental Theor Lebron Online at tinis Remaining Time: 1 hour, 10 minutes, 27 seconds. Question Completion Status: 1 points Save Answer QUESTION 6 The insurance company is expected to make a percent ofeach policy per year Use the rates of applications by type from your joint probability table and assume they give out 10,000 policies a year. Show your work to the camera either by using MS Excel or showing your written work to the camera before you type in your answer Use larger than do not include the dollar sign in your answer. 6. What does the company expect to make this year (Expected Value) if they make the following profits per policy? o 0 for a high risk. o S 200 for a moderate risk. o S 500 for a low risk. 1 points Saved QUESTION 7

Explanation / Answer

Based on previous question, 6 are moderate risks, 4 are low risk and 10 are high risks. Hence, 10000 are bifurcated as below:-

10000----------------à5000 (high risk)

10000----------------à2000 (moderate risk)

10000----------------à3000 (low risk)

Expected profit= 5000(0)+2000(200)+3000(500)=0+400000+1500000=1900000

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