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An Insurance Company Will Insure a $75,000 Hummer for Its

question 101

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An insurance company will insure a $75,000 Hummer for its full value against theft at a premium of $1500 per year.Suppose that the probability that the Hummer will be stolen is 0.0075.Find the premium that the insurance company should charge if it wants its expected net profit to be $2000.


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Warehouse

A large building where goods are stored before they are distributed to stores or consumers.

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The act of documenting transactions within a corporation's journal, which is a step in the accounting cycle.

Mortgage Issued

The lending of funds by a financial institution to an individual or organization for the purchase of real estate, secured by the property itself.

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The expense incurred to improve the quality, features, or performance of an asset, product, or system beyond its original specifications.

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