+1 (347) 474-1028 info@essayparlour.com

Maritime Insurance Company offers insurance policies for rec

Paper help Economics Maritime Insurance Company offers insurance policies for rec

Economics

Maritime Insurance Company offers insurance policies for rec

Maritime Insurance Company offers insurance policies for recreational boats. A typical policy will… Show more Maritime Insurance Company offers insurance policies for recreational boats. A typical policy will pay the replacement cost of $25,00 if the boat is a total loss.If the boat is not a total loss but the damage is more than $10,000 the policy pays $5,000. For damage under $10,000, no coverage is offered. The company estimates the probability of no damage to be .60, the probability of damage between $0 and $10,000 to be .25, and the probability of damage between $10,000 and $25,000 to be.12 If the company wants to make a profit of $200 above the expected cots, what should be the price of the policy? • Show less

Order Now

Ready to try a high quality writing service? Get a discount here