ps theft insurance : PS Archive
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# ps theft insurance

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Manager
Joined: 05 Oct 2005
Posts: 200
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02 Mar 2006, 03:55
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Lee College insures its students for thefts up tp $1000. The college makes no profit, but sets the premium to cover administrative costs of 10 per cent on an average claim of$120. If the annual premium per
student is $24, what is the expected number of thefts per 100 students per year? (A) 12 (B) 14 (C) 16 (D) 18 (E) 20 P.S. The answer is D... but why? _________________ when there is a will there is a way best regards Intern Joined: 17 Feb 2006 Posts: 11 Followers: 0 Kudos [?]: 0 [0], given: 0 Re: ps theft insurance [#permalink] ### Show Tags 02 Mar 2006, 06:13 mand-y wrote: Lee College insures its students for thefts up tp$1000. The college
makes no profit, but sets the premium to cover administrative costs of
10 per cent on an average claim of $120. If the annual premium per student is$24, what is the expected number of thefts per 100 students
per year?

(A) 12
(B) 14
(C) 16
(D) 18
(E) 20

P.S. The answer is D... but why?

Hi,

Where is the question taken from ? I'd solve like this:

(24/120*10%) = (24/12) = 2 thefts / student, so I would say there should be 200 thefts per 100 students.

Be happy to se other people's answers !

GP
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Joined: 20 Feb 2006
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06 Mar 2006, 07:52
I too got 200.
Explanation is same as that of gpmagnus.
06 Mar 2006, 07:52
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