Based on historical data, an insurance company estimates that a particular customer has a 2.4% likelihood of having an accident in the next year, with the average insurance payout being $2700.
If the company charges this customer an annual premium of $250, what is the company's expected value of this insurance policy?
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Home » Mathematics » Based on historical data, an insurance company estimates that a particular customer has a 2.4% likelihood of having an accident in the next year, with the average insurance payout being $2700.