question archive Brenda is choosing a car insurance plan

Brenda is choosing a car insurance plan

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Brenda is choosing a car insurance plan. Based on her driving history and traffic where she lives, Brenda estimates that there is a 20% chance she will have a car collision this year. In each plan, the insurance will cover the full cost of the collision after the deductible is paid. Which of the plans detailed in the table is most likely to save Brenda the most money. Based on expected value?

Plan

Deductible

Collision

comprehensive

Premium total

A

$300

$500

$234

$734

B

$500

$430

$212

$642

C

$1,000

$340

$175

$515

d

$2,500

$278

$127

$405

  

  1. Plan a
  2. Plan B
  3. Plan c
  4. Plan D

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