All categories - 3 September 2006

Checking my work on my statistics stuff...

You're an insurance agent, selling insurance: $1000 policies against occurence B. B happens to 2% of the people owning the policy, historically. There's a $20 administrative fee for each policy sold.

How much does each policy have to cost to make a $100 profit on each?

Here's basically what I did:
P=profit, n=number of policies, p=price per policy, P/n=profit per policy

P=np-20n-(1000n*.02)
P=np-40n
P/n=p-40
100=p-40
p=140

Is that about right?

2006-09-03 08:47:08 · 6 answers · asked by Anonymous 3 in Mathematics

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