business statistics.
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business statistics.
business statistics.
Homework 4 Please upload pdf file only Name your file in this format: LastName_FirstName_HW 4.pdf For example: my submi tted pdf file name would be: Iqbal_Gazi_HW 4.pdf 4.9 A private pilot wishes to insure his airplane for $200,000. The insurance company estimates that a total loss will occur with probability 0.002, a 50% loss with probability 0.01, and a 25% loss with probability 0.1. Ignoring all other partial losses, what premium should the insurance company charge each year to realize an average profit of $500?
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