Question

type the correct answer in each box.
acasa insurance company offers two plans for home insurance. plan a has a $750 yearly premium with a $3,000 deductible. plan b has a $1,200 yearly premium with a $1,000 deductible. last year, 20% of all policyholders made damage claims. the average claim amount was $6,500
the expected value per claim for every customer who chooses plan a is $
the expected value per claim for every customer who chooses plan b is $

Explanation:

Step1: Define claim payout logic

For a claim of $\$6500$, the customer pays the deductible, so the insurance payout (customer's expected value from claim) is $\text{Claim Amount} - \text{Deductible}$.

Step2: Calculate Plan A expected value

Subtract Plan A deductible from claim:
$\$6500 - \$3000 = \$3500$

Step3: Calculate Plan B expected value

Subtract Plan B deductible from claim:
$\$6500 - \$1000 = \$5500$

Answer:

The expected value per claim for every customer who chooses plan A is $\$3500$.
The expected value per claim for every customer who chooses plan B is $\$5500$.