Expected Value A tree cutting business has an insurance policy to cover any damages caused during the tree cutting process. The business pays an annual premium of $1,500 for a policy that covers up to...

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Extracted text: Expected Value A tree cutting business has an insurance policy to cover any damages caused during the tree cutting process. The business pays an annual premium of $1,500 for a policy that covers up to $500,000 in damages. The probability of a tree causing damage is 0.002. What is the expected value? The expected value is That means the tree cutting company can expect to on average, per year. Mathematically, would this be considered a "fair" deal between the insurance company and the tree-cutting business? Next page MacBook Air %24