Business

Jaydan Christensen

29 October, 08:57

An auto insurance company is implementing a new bonus system. In each month, if a policyholder does not have an accident, they will receive a cash-back bonus of 5 from the company. Among the 1000 policyholder of the auto insurance company, 400 are classified as low-risk drivers and 600 are classified as high-risk drivers. In each month, the probability of zero accidents for high-risk drivers is 0.80 and the probability of zero accidents for low-risk drivers is 0.90. Calculate the expected bonus payment from the company to the 1000 policyholders in one year.

+2

Answers (1)

Know the Answer?

Not Sure About the Answer?

Get an answer to your question ✅ “An auto insurance company is implementing a new bonus system. In each month, if a policyholder does not have an accident, they will receive ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.

Search for Other Answers

You Might be Interested in

The project manager has been negotiating with an integrated circuit vendor for the last six months and has sent the vendor a statement of work. The vendor has responded with a fixed-fee pricing proposal.

Every five years, the upper-level managers of Zebra Technology meet to develop a new large-scale action plan that will set the direction for the company for the next five years. In that meeting the managers will work on developing a strategy.

Morin Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon interest payment of $60. The market requires an interest rate of 8.0% on these bonds. What is the bond's price

Complete the following sentence about challenging situations at work with the correct terms. Joaquin just lost his job but is excited about looking for a new one.

Select the examples that best represent Agriculture, Food, and Natural Resources customers. Check all that apply.

New Questions in Business

What is the definition of advertising? a. advertising is the type of font used in a newspaper. b. advertising is the set of principles by which we judge if something is right or wrong. c.

The Pita Pit borrowed $206,000 on November 1, 2021, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full at maturity on May 1, 2022.

A firm has net working capital of $510, net fixed assets of $2,256, sales of $6,200, and current liabilities of $820. How many dollars worth of sales are generated from every $1 in total assets

If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

2012, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000. During year its real GDP grew by with this growth in real GDP? a.