Based on an insurance company

timer Asked: Nov 15th, 2015

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Based on an insurance company's past data, each year an average of 1/90 policy holders make a claim of $250, 1/250 policy holders make a claim of $15,000, and 1/450 make a claim of $24,000.  7. What would the insurance company have to charge per policy-holder to break even? (i.e., what the premium would have to be in order to have an expected profit of zero.)

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