The Insurance Carrier Used by Wayne's Pool Service Specifies 65

question 91

Multiple Choice

The insurance carrier used by Wayne's Pool Service specifies 65% coinsurance. The company recently incurred $233,000 in damages from a tornado. The building was valued at $390,000, but was only insured for $209,000. What will the insurance company pay for the loss?

• A) $144,460.00
• B) $192,098.62
• C) $209,000.00
• D) $233,000.00

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Definitions:

Degrees of Freedom

Degrees of freedom refer to the number of values in a statistical calculation that are free to vary without violating the constraints of the calculation.

Population Standard Deviation

A measure of the dispersion or variability within a population data set, indicating how spread out the data points are from the mean.

Interval Estimate

An estimate of a population parameter that gives an interval believed to contain the parameter.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution without violating any constraints.