Now our actuary has found the probability of each possible event happening over the year. She has also calculated the average damages associated with each claim in the table below. Fill in the probability of damages from Part 3A in the table! Type of Claim Probability of Damages Cost of Damages Fire and Lightning 0.35% $43,983 Wind and Hail 2.86% $8,313 Flooding and Freezing 0.0075%_____ $8,861 Theft 0.0057%_____ $3,990 House Fire 0.54% $54,208 Other Damages 0.88% $5,048 For her market, she would like to charge approximately $1150 per year for her. She wants to find the average rate of return for each of her customers. First she needs to find the expected value of damages—that is, how much the insurance provider expects to pay for each person. Use the table above to find the expected value of damages and explain your answer in the box below
:
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
