What is the expected value danielle would reserve each month, Business Management

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What is the expected value danielle would reserve each month

Problem

Danielle has an insurance policy with a premium of $75 per month. In September she is in an accident and receives a bill worth $2990 for the repair of her own property. Her deductible is $250 and her coverage limit is $5000. Assume Danielle has a 4% chance of an accident each month.

What is the expected value Danielle would reserve each month is she self-insured?

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Business Management: What is the expected value danielle would reserve each month

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Business Management: What is the expected value danielle would reserve each month

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