SOLUTION: Shiny White dental insurance costs $258 per year. Approximately one-third of insured people need a filling, which averages $110 each. 80% of insured people get a preventive check-u
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-> SOLUTION: Shiny White dental insurance costs $258 per year. Approximately one-third of insured people need a filling, which averages $110 each. 80% of insured people get a preventive check-u
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Question 1180091: Shiny White dental insurance costs $258 per year. Approximately one-third of insured people need a filling, which averages $110 each. 80% of insured people get a preventive check-up each year, and the average cost of this visit is $95. If you consider Shiny White’s income and expenses, what is the expected value of each insured customer?
a. $258
b. $145.70
c. $35.54
d. $53
e. $97 Answer by ikleyn(53763) (Show Source):
The company's income is $258 from each insured customer.
The company's expenses are + for each insured customer.
So, the expected value for the company of each insured customer is
258 - - = 145.33 dollars.
It is not exactly the figure from your list, but it is close to answer b).
