Find the Expected Value

question 64

Multiple Choice

Find the expected value.
-An insurance policy sells for $750. Based on past data, an average of 1 in 80 policyholders will file a $10,000 claim, an average of 1 in 140 policyholders will file a $20,000 claim, and an average of 1 in
200 policyholders will file a $50,000 claim. What is the expected value to the company per policy
Sold?

• A)$232
• B)$518
• C)$258
• D)$262

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Definitions:

Spiritual Care

Support provided to individuals to address spiritual or religious needs, especially important in healthcare for patients facing serious illnesses or end-of-life issues.

Knowledge Base

A centralized repository for information, including FAQs, manuals, and troubleshooting guides, which can be used for problem-solving or decision-making.

General Awareness

A broad understanding or knowledge about general topics, current events or issues.

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A condition in which the body lacks the enzyme lactase, resulting in the inability to digest lactose, a sugar found in milk and dairy products.