Multiple Choice

-Jennifer owns a car worth $15,000, and that is her only wealth. There is a 10 percent chance that Jennifer will have an accident within a year. An insurance company agrees to pay a car owner like Jennifer the full value her car, if the car owner buys the company's insurance policy. The company's operating expenses are $1,000. What is the minimum insurance premium that the company is willing to accept?
A) $2,500
B) $2,000
C) $1,500
D) $1,000
Correct Answer:
Verified
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