Jim Has a 5-Year-Old Car in Reasonably Good Condition A)$3496
B)$3497
C)$3498
D)$3499
E)$3495

question 33

Multiple Choice

Jim has a 5-year-old car in reasonably good condition. He wants to take out a $50,000 term (that is, accident benefit) car insurance policy until the car is 10 years old. Assume that the probability of a car having an accident in the year in which it is x years old is as follows: Jim is applying to a car insurance company for his car insurance policy. The expected loss to the car insurance company for the 5th, 6th, 7th, 8th, and 9th years would be $595.50, $646.00, $698.00, $751.50 or $806.50 respectively. What would be the total expected loss to the car insurance company over the years 5 through 9? Round your answer to the nearest dollar.
$$\begin{array} { l c c c c c } x = \text { age } & 5 & 6 & 7 & 8 & 9 \\P \text { (accident) } & 0.01191 & 0.01292 & 0.01396 & 0.01503 & 0.01613\end{array}$$

• A)$3496
• B)$3497
• C)$3498
• D)$3499
• E)$3495

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Definitions:

Framers

The group of individuals who shaped and drafted the United States Constitution during the Constitutional Convention of 1787.

Constitution

A set of fundamental principles or established precedents according to which a state or other organization is governed, outlining the structure of government and the rights of citizens.

Federalists

Advocates for a strong central government and supporters of the ratification of the U.S. Constitution in the late 18th century, as opposed to anti-federalists who favored stronger state governments.

Antifederalists

Political figures and activists in early American history who opposed the creation of a strong federal government, advocating instead for states' rights and a decentralized political structure.