Neco Model Questions Vol1 2020 Commerce Question 31
Practice objective / multiple choice question 31 from the 2020 Neco Model Questions Vol1 Commerce examination.
An insurance company calculates the premium for a motor policy as follows: the expected claim amount is the product of the probability of a claim and the average claim amount. The company adds a loading of 20% to cover expenses and profit. Customers who install a safety device receive a 10% discount on the premium, and the device reduces the probability of a claim by 15%. Given a claim probability of \(0.04\), an average claim amount of \(150000\) Naira, determine the final premium (in Naira) that a customer with the safety device must pay.
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About This Question
This is Neco Model Questions Vol1 2020 Commerce Question 31. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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