expected value of insurance?
house is worth 1,000,000. fire insurance is 50 per year. insurance as maximum coverage of 100,000. there is 0.1 percent chance every year house will burn down. What is expected value of keeping the current insurance instead of buying more?
(is the 50 supposed to be included in the calculation?)
- car253Lv 73 weeks ago
Wrong category. Try homework help.