​Use the Following Setup for Question

question 78

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 company can correctly anticipate the adverse selection,what premiums would it charge?​

• A)​$2500
• B)$2600
• C)$1000
• D)​$1100

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Definitions:

Phonemes

Phonemes are the smallest units of sound in a language that can distinguish one word from another, such as the distinction between the consonant sounds in "pad" and "bad."

Emotion

Complex psychological states involving thoughts, feelings, physiological changes, and behaviors.

Monkeys

Primates characterized by a tail (differentiating them from apes), known for their high level of social interaction and complex behaviors.

James-Lange Theory

The James-Lange theory of emotion suggests that emotions arise from physiological reactions to events, implying that bodily responses precede and drive the subjective experience of emotions.