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Suppose that everyone faces a...

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Accounting

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Suppose that everyone faces a 5% probability of an automobile accident every year in accident will on average cost eacher $9.000. Suppose bere are two troes of individuals these 345,000.00 in the back and those wc se 500.00 in the bar Asume that individuals th $4.500.00 in the bankare bankruptcy if they get in an accident. Is bankruptcx. creditors receive only what individuals have the bank. Assume that types of increas are only sigo eskaverse Se sister, the actuarially fair price et full insurance, we all camages are said by the insurance company's the secource is Descary store . this prices $4,500.00 rebank buy insurance, and those wo 545,000.00 in the dark ikey ace. Hint for each type of over, compare the price of insurance to the expected cost wout insurance.) Success has been suced forcing in to purchase insurance at the analyter price The these the ty te ever of two se 500.00 in se bora True Grade It Now Save & Continue Continue without sag

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