Use the Following to Answer Questions

question 84

Multiple Choice

Use the following to answer questions :
Scenario: Choosing Insurance
The Ramirez family owns three cars and is considering buying insurance to cover the cost of repairs.They face two possible states: in state 1,their cars need no repairs and their income available for purchasing other goods and services is $50 000;in state 2,their cars need $10 000 worth of repairs and their income available for purchasing other goods and services is reduced to $40 000.The probability of repairs is 10%,while the probability of no repairs is 90%.
-(Scenario: Choosing Insurance) Use Scenario: Choosing Insurance.The premium on a fair insurance policy for the Ramirez family will be:

• A) $0.
• B) $900.
• C) $1 000.
• D) $2 000.

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Definitions:

Global Popularity

The worldwide recognition and approval of a person, product, concept, or cultural phenomenon.

Jamestown

The first permanent English settlement in North America, established in Virginia in 1607.

Colonial Governments

Administrative bodies established by colonial powers to oversee and control their colonies, often imposing foreign governance systems on indigenous populations.

Colonial Experience

Refers to the period of history when various European powers established colonies abroad, imposing their control and influence on other territories and peoples.