Jim Has a 5-Year-Old Car in Reasonably Good Condition Jim Is Applying to a Car Insurance Company for His

question 16

Multiple Choice

Jim has a 5-year-old car in reasonably good condition. He wants to take out a $30,000 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: $$\begin{array} { l c c c c c } x = \text { age } & 5 & 6 & 7 & 8 & 9 \\P \text { (accident) } & 0.01191 & 0.01292 & 0.01396 & 0.01503 & 0.01613\end{array}$$ Jim is applying to a car insurance company for his car insurance policy. If the car insurance company charges $6000 for the policy and the expected total loss is $2099, how much profit does the company expect to make? Round your answer to the nearest dollar.

• A)$3902
• B)$3905
• C)$3900
• D)$3897
• E)$3903

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Definitions:

Decimal Place

The position of a digit to the right of the decimal point in a number, indicating its value.

Syringe Size

The volume capacity of a syringe, typically measured in milliliters (ml) or cubic centimeters (cc), used for the administration of injections.

Prefilled Syringe

A syringe filled with a fixed dose of medication or vaccine, ready for use, intended to reduce preparation time and dosing errors.