Do Homework-Sarah itngibbon MolFi https//www.mathul.com/Student STAT 2300-002 Sp

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Do Homework-Sarah itngibbon MolFi https//www.mathul.com/Student STAT 2300-002 Spring 2018 Homework: HW 6.1 Score: 0 of 3 pts 14.1.32 homeworkid-466360732&questionid-6afushed-talseacid-4857425.; Sarah Fiagbon& 1 22318 10:46 AM 7of8(6complete) HW Score: 68 42%, 13 of 191 Question Help An insurance policy costs $110 and will pay policyholders $12,000 if they sutfer a major injury (resulting in hospitalization) or $4000 i they suffer a minor injury tresulting in lost time from work). The company estimates that 1 in every 2080 policyholders weill suler a major injury and that 1 in 509 will sufler a minor injury a) Create a probability model for the profit on a policy bl Whats the company's expected profit on the policy? c) What's the standard deviation? a) First find the probability and profit for each outome Plevent) no injury minor injury Round to six decimal places as needed) Enter your answer in the edit fields and then click Check Answer Clear Al DOLL F5 F8 F10 F11 F12 PrtScr 2 5 6 8 9

Explanation / Answer

from given information:

b) from abvoe:

expected value E(X) =$96.37

c)

std deviation =(E(X2)-(E(X))2)1/2 =(109766.84-96.372)1/2 =316.98

x P(event)_ profit no injury 0.997555 110 major injury 0.001965 -3890 minor injury 0.000481 -11890

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