Suppose that if you got in a collision, your claim amount would be around $25,000. You go to an insurance company and they quote you a price of $600 for the year. What is their estimate of your probability of getting in a collision? (ignore the possibility of multiple collisions).

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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Suppose that if you got in a collision, your claim amount would be around $25,000. You go to an insurance company and they quote you a price of $600 for the year. What is their estimate of your probability of getting in a collision? (ignore the possibility of multiple collisions).

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