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Question: an auto insurance company is implementing a new bonus system...

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An auto insurance company is implementing a new bonus system. In each month, if a policyholder does not have an accident, he or she will receive a 5.00 cash-back bonus from the insurer. Among the 1,000 policyholders of the auto insurance company, 400 are classified as low-risk drivers and 600 are classified as high-risk drivers In each month, the probability of zero accidents for high-risk drivers is 0.80 and the probability of zero accidents for low-risk drivers is 0.90 Calculate the expected bonus payment from the insurer to the 1000 policyholders in one year. OA) 48,000 B) 50,400 C) 51,000 D) 54,000 E) 60,000

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