Property Valued at $150,000 Was Insured for $100,000

question 5

Short Answer

Property valued at $150,000 was insured for $100,000. The policy contained a 60% coinsurance clause. A fire caused $45,000 in damages. Compute the amount the insurance company paid for repairs.

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Definitions:

Slope

The measure of the steepness or inclination of a line, often describing the rate of change between two variables.

Simple Linear Regression

A statistical method that allows us to summarize and study relationships between two continuous (quantitative) variables.

Standard Error

A measure of the dispersion or variability of a sampling distribution.

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.