Question 1177075
Here's how to calculate the expected value for Acasa Insurance Company for Plan A:

**1. Calculate the Expected Claim Payout**

* **Probability of Water Damage:** 12% or 0.12
* **Average Claim Amount:** $5,200
* **Deductible:** $3,000
* **Payout per Claim:** $5,200 - $3,000 = $2,200 (since the average claim exceeds the deductible)
* **Expected Claim Payout:** 0.12 * $2,200 = $264

**2. Calculate the Expected Value**

* **Yearly Premium:** $700
* **Expected Claim Payout:** $264
* **Expected Value (Acasa's Gain):** $700 - $264 = $436

**Therefore, the expected value to Acasa for every customer who chooses Plan A is $436.**

The correct answer is **B. $436**.