An insurance company insures 200 automobiles. The per vehicle expected loss and variance are $1200 and 640,000, respectively.a. If the company charges

An insurance company insures 200 automobiles. The per vehicle expected loss and variance are $1200 and 640,000, respectively.a. If the company charges $1300 per exposure unit (per vehicle), then what is the probability that losses will be greater than the premiums collected? Graphically illustrate your calculations.b. How much must the company charge per exposure unit (per vehicle) to be 99% certain that premiums will be sufficient to pay off losses? Graphically illustrate your calculations.

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