Question

2. Bella isn't considered the best driver for her age. In fact, it has been determined that she has a 40% probability of having a $450 loss and a 30% probability of having a $600 loss. The total expected loss and the standard deviation are

Question 2 options:

	$180; $143.25
	$180; $243.72
	$360: $243.72
	$360; $143.25

3. ABC State Insurance Company has agents who are under a contract that allows them to sell only ABC State Insurance Company policies. Which distribution system describes ABC State Insurance Company’s organization?

Question 3 options:

	Direct
	Captive
	Independent
	Group

Answer 1

Expected Loss = (0.4 x 450) + (0.3 x 600 ) = $360

Standard Deviation =

= 143.2

Answer is $360,143.2

Distribution system that best describes ABC State Insurance Company’s organization is -

captive since the selling of policies is restricted of only ABC state Insurance company by the agents under the contract.