Anonymous
Anonymous asked in Business & FinanceInsurance · 3 weeks ago

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?)

1 Answer

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  • car253
    Lv 7
    3 weeks ago

    Wrong category.   Try homework help.

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