Mathematics, 18.04.2021 19:30 Albertrami9019
An insurance company knows that the average cost to build a home in a new California subdivision is $97,549 and that in any particular year there is a 1 in 52 chance of a wildfire destroying all the homes in the
subdivision. Based on these data and assuming the insurance company wants a positive expected value when it sells policies, what is the minimum the company must charge for fire insurance policies in this
subdivision?
Answers: 3
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