(12pts) Acasa Insurance Company offers several plans for home insurance.
Plan A has a $700 yearly premium with a $3,000 deductible.
Plan B has a $1,200 yearly premium with a $1,000 deductible.
Water damage (from broken pipes, overflows, etc.) results in approximately 12% of claims overall, with an average claim being $5,200. What is the expected value (loss or gain) to Acasa for every customer who chooses plan A?
A) -$1,060
B) $436
C) -$360
D) -$100
