​Use the Following Setup for Question

question 4

Multiple Choice

​Use the following setup for question
Both Nadia and Samantha are applying to insure their car against theft.Nadia lives in a secure neighborhood,where the probability of theft is 10%.Samantha lives in a lesser secure neighborhood where the probability of theft is 25%.Both Nadia and Samantha own cars worth $10,000,and are willing to pay $100 over expected loss for insurance.
-If the insurance company can successfully screen both Nadia and Samantha into appropriate contracts,it would earn​

• A)​Between a zero and $200 loss
• B)Between zero and $200
• C)$3500 loss
• D)​$3500 gain

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Definitions:

Early Majority

The segment of consumers in the technology adoption lifecycle that adopts a new product just before the average person, usually after seeing evidence that it works from the "early adopters."

Customer Segmentation

The practice of dividing a company's customers into groups that reflect similarity among customers in each group for targeted marketing and sales strategies.

Entrepreneur

An individual who initiates, organizes, and manages a venture to bring a new product or service to the market, often taking on significant financial risks in the hope of profit.

Beachhead Market

An initial target market that a company focuses on penetrating as a point of entry and a foundation for future growth.