An Insurance Company Will Insure a $75,000 Particular Make and Model

question 143

Multiple Choice

An insurance company will insure a $75,000 particular make and model of car for its full value against theft at a premium of $1,500 per year. Suppose that the probability that this particular automobile make and model will be stolen is .0075. Calculate the expected net profit for the insurance company.

• A) $937.50
• B) $551.25
• C) $1488.75
• D) $562.50

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Definitions:

Parasite-Host Relationships

Interactions between organisms where the parasite lives on or in the host, often causing harm to the host.

Common Genotypes

Genetic compositions that are frequently observed within a population, indicating a high frequency of certain alleles.

Evolutionary Cycles

Periods of evolutionary change characterized by sequences of rapid diversification followed by longer periods of stability or gradual change in species.

Asexual Populations

Groups of organisms that reproduce without the involvement of sexual gametes, resulting in offspring genetically identical to the parent.