An insurance company insures 100,000 cars in a certain area. The company has determined that on average, each year they will have to pay the following amounts for accidents in the area:
?
   $100,000 with probability 0.0004
   $50,000 with probability 0.001
   $25,000 with probability 0.006
   $5000 with probability 0.011
   $1000 with probability 0.023
?
What is the company's expected payout per car each year?
?

A. $318.00
B. $4163.00
C. $4140.00
D. $381.60
E. $279.84


Answer: A

Mathematics

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