An Automobile Insurance Company Estimates the Following Loss Probabilities for the Next

question 34

Essay

An automobile insurance company estimates the following loss probabilities for the next year on a $25,000 sports car: $$\begin{array} { l l } \text { Total loss: } & 0.001 \\50 \% \text { loss: } & 0.01 \\25 \% \text { loss: } & 0.05 \\10 \% \text { loss: } & 0.10 \\\text { No loss: } & 0.839\end{array}$$ Assuming the company will sell only a $500 deductible policy for this model (i.e., the owner covers the first $500 damage), how much annual premium should the company charge in order to average $620 profit per policy sold? 2 Find Mean, Variance, Standard Deviation

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Definitions:

Joint Cavity

The potential space between the articulating surfaces of a synovial joint filled with synovial fluid that lubricates and nourishes the cartilage.

Ellipsoid

A geometric surface, all of whose plane sections are either ellipses or circles, commonly found in shapes like footballs or rugby balls.

Ball and Socket

A type of joint in which the spherical end of one bone fits into the round socket of another bone, allowing for multi-directional movement and rotation.

Saddle

A seat for a rider, typically made of leather, fastened to an animal's back by a girth.