help me please
Assume that you have a car worth $7300 and you wish to insure it for its full replacement value if it is stolen. If there is a 2% chance that the car will be stolen, what would a fair premium price be?
A. $133.94
B. $152.98
C. $148.98
D. $161.30

Question

help me please
Assume that you have a car worth $7300 and you wish to insure it for its full replacement value if it is stolen. If there is a 2% chance that the car will be stolen, what would a fair premium price be?
	A. $133.94 	
	B. $152.98 	
	C. $148.98 	
	D. $161.30

anonymous · Answer

Basically you need to balance the costs so they are equal.

anonymous · Answer

Quick calculations:

>>> 7300.0/50
146.0
>>> 7300.0/49
148.9795918367347

anonymous · Answer

So the idea is that 1/50 you lose the car and without insurance that costs you 7300.
Your expected loss is 1/50 times 7300.
With insurance, you lose $x with probability 1, but there is no additional loss if the car is stolen.  Anyone wanna help with why it's 49 and not 50 for the division?
Anyway, among the listed answers, you can see which one to go with.

anonymous · Answer

o

anonymous · Answer

thank you

anonymous · Answer

yw