98. 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 cash-back bonus of 5 from
the insurer.
Among the 1,000 policyholders of the auto insurance company, 400 are classified as lowrisk 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.
(A) 48,000
(B) 50,400
(C) 51,000
(D) 54,000
(E) 60,000