Chirag's Greenhouse Owns a Building Valued at $225,000, but Has

question 110

Short Answer

Chirag's Greenhouse owns a building valued at $225,000, but has decided to insure it for only $110,000. His insurance policy stipulates coinsurance of 50%. If a fire were to cause $170,000 in damage, how much would the insurance company pay on the claim?

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Definitions:

Normal Distribution

The distribution is symmetric relative to the mean, with a notable prevalence of data points in close proximity to the mean compared to those farther away.

Sample Proportion

The fraction of the sample that exhibits a certain trait or characteristic.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in the data set deviate from the mean.

Standard Error

A measure of the standard deviation of the sampling distribution of a statistic, indicating the accuracy with which a sample represents a population.