Calculate the Short-Term Premium and Refund for the Policy Canceled

question 76

Short Answer

Calculate the short-term premium and refund for the policy canceled by the insured. $$\begin{array} { l l l l } \text { Annual } & \text { Canceled } & \text { Short-term } \\\underline{\text { Premium } }& \underline{\text { After } }& \underline { \text { Premium } } & \underline{\text { Refund }} \\\$ 896 & 5 \text { days } & &\end{array}$$

---

Definitions:

P(A|B)

The probability of event A occurring given that event B has already occurred, representing a conditional probability.

Complement

In probability theory, the complement of an event is the set of all outcomes in the sample space that are not included in the event itself.

Independent

In statistical analysis, this term describes variables that are not affected by changes in other variables.

Equivalent

A term used to indicate two items, systems, or quantities that are the same or have identical value or function.