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
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6 answers
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asked by
Anonymous
3