need help with some statistics will medal and fan!!

An insurance company issues a policy for a diamond ring worth $17500 for an annual premium
of $262.50. If the probability that the ring will be lost or damaged is .005, what is the
company’s expected profit?
a) $170 b) $175 c) $87.50 d) $82.50 e) NOTA

Question

need help with some statistics will medal and fan!!

An insurance company issues a policy for a diamond ring worth $17500 for an annual premium
of $262.50. If the probability that the ring will be lost or damaged is .005, what is the
company’s expected profit?
a) $170 b) $175 c) $87.50 d) $82.50 e) NOTA

anonymous · Answer

@IrishBoy123  any clues?

irishboy123 · Answer

expected loss would be 17500 * 0.05

so i guess expected profit would be the premium minus that.....

this is really an accounting question :p  yuk