Based on this information, should she buy the policy

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Deductible A car owner may buy insurance that will pay
the full price of repairing the car after an at-fault accident,
or save $12 a year by getting a policy with a $500 deduct-
ible. Her insurance company says that about 0.5% of drivers
in her area have an at-fault auto accident during any given
year. Based on this information, should she buy the policy
with the deductible or not? How does the value of her car
influence this decision?
Transcribed Image Text:Deductible A car owner may buy insurance that will pay the full price of repairing the car after an at-fault accident, or save $12 a year by getting a policy with a $500 deduct- ible. Her insurance company says that about 0.5% of drivers in her area have an at-fault auto accident during any given year. Based on this information, should she buy the policy with the deductible or not? How does the value of her car influence this decision?
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