The insurance company charges an annual rate of R260 for the collision coverage.What is the expected value of the collision policy for a policyholder? (Hint: it is theexpected payments from company...

The insurance company charges an annual rate of R260 for the collision coverage.What is the expected value of the collision policy for a policyholder? (Hint: it is theexpected payments from company minus the cost of coverage.)(2)c)Why does the policyholder purchase a collision policyholder with the expected value?