Do Homework Abrar Alabdulwahed Internet Explorer P dentplaye

Do Homework Abrar Alabdulwahed Internet Explorer P dent/playerHomework asp homeworkld-2663392318 questionlida 158flushed false&cldr2955037;&c; Abrar Alabdulwahed 3/4/15 8:05 PM Homework: HW 6.1 Score: 0.5 of 1 pt 15 of 19 (19 complete) HW Score: 89 17 1694 of 19 pts 61.27 IE Question Help suppose ine insurance company a 3150,00o one year term compute interpre expected value otthi poley to the insuraneecompany year 0. The expected value is eReund two decimel ploees es needed your answer in the answer box, then click Check Answer

Solution

Expected value = 220*0.000402-149780*0.999598

= -149719.70

Expected value = $ -149719.70

On the average, there is a loss $ 149719.70 for the company