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Bikul Has Just Started a Great Job and Plans to Buy

question 66

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Bikul has just started a great job and plans to buy a fancy car worth $100,000.Bikul is risk-averse in money matters,but he likes to drive fast,so the probability that he wrecks the car (a total loss of $100,000) is 0.10.The probability that he has no accidents is 0.90.If an insurance company offers Bikul a fair insurance policy,the premium will be:


Definitions:

Iron Law Of Oligarchy

The theory that all forms of organization, regardless of how democratic they are at the start, will eventually and inevitably develop oligarchic tendencies.

Status Generalization

The process by which individuals extrapolate others' broader social status based on limited or irrelevant information.

Sportscaster

A journalist who reports and provides commentary on sports events, either on television or radio.

High Status

Occupying a position of superior rank, prestige, or respect within a social hierarchy.

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