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​Scatterbrain Samantha Often Forgets to Lock Her House

question 46

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​Scatterbrain Samantha often forgets to lock her house.This has caused the probability of a burglary to be 30%.If her house gets broken into,she faces a property loss of $10,000,otherwise she gets to keep her $100,000.What is the minimum price an insurance company could offer (if it had no other costs) ?

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Definitions:

Individual Income Taxes

Taxes levied on the income of individuals or households, varying with income levels.

Social Insurance Taxes

Taxes collected by a government to fund social security programs, providing benefits for retirees, the disabled, and the unemployed.

Corporate Income Taxes

Taxes imposed on the net income (profits) of corporations, determined by the law of the country in which the corporation is registered.

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