Solution

Let 

$A$ be the event that accident occurs.

Let $M_{0.20}, ~M_{0.60}$ and $M_1$ be the event that damage amounts to $20\% , ~60\%$ and $100 \%$ of market value, respectively.

Given:

$$$$P(A)= 0.15, ~ P(M_{0.20}|A)= 0.8, ~ P(M_{0.60}|A)= 0.12,~ P(M_{1}|A)= 0.08

The expected gain of company, μ​=x∑​p(x)x=0.85p+0.12(p−4400)+0.018(p−13200)+0.012(p−22000)=p−1029.6​

For expected gain to be zero, $p=\$ 1029.6$

$Answer$

$ 1029.6

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