Curling is a sport where teams slide stones on ice and attempt to hit targets. Teams consist of four players. Suppose that Bob, Carol, Ted, and Alice are on a team. Bob and Carol have a 40% chance of slipping on the ice; Ted and Alice have a 20% chance. Each slip results in a bruise that costs $150 to treat.

If each member were offered bruise insurance, the premium would be $ (round your response to two decimal places)

Question

Sara Edwards

Business

4 December, 22:57

Curling is a sport where teams slide stones on ice and attempt to hit targets. Teams consist of four players. Suppose that Bob, Carol, Ted, and Alice are on a team. Bob and Carol have a 40% chance of slipping on the ice; Ted and Alice have a 20% chance. Each slip results in a bruise that costs $150 to treat.

If each member were offered bruise insurance, the premium would be $ (round your response to two decimal places)

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Answers (1)

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Kylie Nash · Answer 1

Premium is likely to be $180.00

Explanation:

Two players have 40% chance of slipping

Equally, two players have 20% chance of slipping

bruise cost per slip is $150

Premium=40% chance of slipping*bruise cost*2 players + 20% chance of slipping*bruise cost*2 players

Premium=40%*$150*2+20%*$150*2

Premium=0.4*$150*2+0.2*$150*2

premium=$60*2+$30*2

premium=$120+$60

premium=$180.00

If the insurance company offers bruise insurance to the players, the premium is likely to be in the region of $180.00