Business, 30.11.2019 06:31 cassidy100117

Maritime insurance company offers insurance policies for recreational boats. a typical policy will pay the replacement cost of $25,000 if the boat is a total loss. if the boat is not a total loss but the damage is more than $10,000, the policy pays $5,000. for damage under $10,000, no coverage is offered. the company estimates the probability of no damage to be 0.60, the probability of damage between $0 and $10,000 to be 0.25, and the probability of damage between $10,000 and $25,000 to be 0.12. if the company wants to make a profit of $200 above the expected cost, what should be the price of the policy?

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Maritime insurance company offers insurance policies for recreational boats. a typical policy will p...