Solve the Problem. -An Insurance Company Will Insure a $240,000 Home for Its

question 231

Multiple Choice

Solve the problem.
-An insurance company will insure a $240,000 home for its total value for an annual premium of $580. If the company spends $30 per year to service such a policy, the probability of total loss for Such a home in a given year is 0.001 and you assume either total loss or no loss will occur, what is The companyʹs expected annual gain (or profit) on each such policy?

• A) $310
• B) $340
• C) $260
• D) -$240

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Definitions:

Employee Assistance Programs

Work-based intervention programs designed to identify and assist employees in resolving personal problems that may negatively impact their job performance, health, or well-being.

Conditional Positive Regard

Acceptance of individuals as worthy only when they behave in a certain way.

Going the Extra Mile

Exceeding what is required or expected in order to achieve something, often associated with putting in extra effort, dedication, or hard work.

Customer Complaint

A form of feedback where a customer expresses dissatisfaction with a product or service.