An insurance policy sells for $1000 based on

2022-01-14
An insurance policy sells for $1000 based on past data, an average of 1 in 50 policyholders will file a $10,000 claim, an average of 1 in 100 policyholders will file a $40,000 claim, an average of 1 in  250 policyholders will file an $80,000 claim. Find the expected value (to the company) per policy sold. If the company sells 20,000 policies, what is expected profit or loss?
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