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

question 101

Multiple Choice

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.

• A)$1437.50
• B)$2551.25
• C)$2562.50
• D)$2062.50

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Definitions:

Access Objects

Components within Microsoft Access, such as tables, queries, forms, and reports, used to manage and analyze data.

Tables

Structured arrangements of data, organized in rows and columns, commonly used in databases, spreadsheets, and documents for data presentation and analysis.

Queries

In computing, queries are questions or requests for data or information from a database. They are usually written in a query language, such as SQL (Structured Query Language).

Forms

In computing, forms are user interface elements that collect input from the user, often used for submitting information to a database or application.