Multiple Choice
Assume that a single insurance plan applies to 2,000 low-risk people and 1,000 high-risk people opting for insurance coverage.If the average claim submitted by low-risk people is $100 while that submitted by high-risk people was $1,000, the insurer would break even by setting a premium of:
A) $250.
B) $400.
C) $200.
D) $500.
Correct Answer:
Verified
Correct Answer:
Verified
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