Collision insurance with a $500 deductible costs $310 per year. with a $1,000 deductible, it costs $255 a year. the table shows the average cost of repairs for two types of accidents and the probability of each type.
choose the deductible that completes the sentence.
collision insurance with a ___ has the least expected cost for one year.
what is the least expected cost for one year?
cost = $

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topeadeniran2 topeadeniran2 · Answer 1 · 2022-06-06T22:37:44+02:00

The least expected cost for one year based on the information about the deductible is $1148.19.

The expected cost for one year for insurance 1 will be:

= 500 + 300 + 338.19

= 1148.19

The expected cost for one year for insurance 2 will be:

= 1000 + 255 + 338.19

= 1593.19

Collision insurance with a $500 deductible costs has the least expected cost for one year.

Therefore, the least expected cost for one year based on the information about the deductible is $1148.19

Learn more about deductible on:

brainly.com/question/5306277

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