Business, 24.10.2019 17:43 ieyaalzhraa

An insurance company issues a one-year $1000 policy insuring against an occurrence a that historically happens to 2 out of every 100 owners of the policy. administrative fees are $15 per policy and are not part of the company’s "profit." how much should the company charge for the policy if it requires that the expected profit per policy be $50? [hint: if c is the premium for the policy, the company’s "profit" is c −15 if a does not occur and c −15−1000 if a does occur.]

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