Determining insurance net gain

Assignment Help Basic Statistics

Reference no: EM13100339

An insurance company sells $300 deductible annual automobile insurance policies to a certain category (age, driving records) for $1000.00 The insurance company has set four different accident types, and the probabilities associated with each accident type are given in the table below:

Type of accident Probability
No accident 0.98

Damage caused=$1000 0.01

Damage caused=$3000 0.005

Damage caused=$5000 0.004

Damage caused=$10000 0.001

Let X be the net gain in the insurance company. Construct a tabular probability distribution for X.

Reference no: EM13100339

Questions Cloud

Inference about population proportion : Spinning a coin, unlike tossing it, may not give heads and tails equal probabilities. I spun a penny 200 times and got 83 heads. How significant is this evidence against equal probabilities?

Introduction to two-tailed hypothesis test : A researcher is evaluating the influence of a treatment using a sample selected from a normally distributed population with a mean of µ = 80 and a standard deviation of σ = 20. The researcher expects a 12 point treatment effect and plans to use a ..

Calculate the free energy of transfer : Calculate the free energy of transfer involved in the hypothetical transfer of electrons from complex 1 to complex 4. The electron reduction potential of complex 1 in -0.32V. Complex 2 is +0.03V. Complex 3 is +0.04V. Complex 4 is +0.23V.

Discuss the ethical implications of reverse engineering : What are the ethical implications of reverse engineering.. Is it leagal, moral.. Please discuss this topic with your personal and believe system.

Determining insurance net gain : An insurance company sells $300 deductible annual automobile insurance policies to a certain category (age, driving records) for $1000.00 The insurance company has set four different accident types

Calculate the total number of atp molecules : Calculate the total number of ATP molecules that will be produced upon complete breakdown of one C18 fatty acid molecule. Which would produce more ATP, this process, or the breakdown of 1 glucose molecule.

Question about partnership tax returns : Malcolm Fox and Rhonda Ford are equal partners in MFRF LLP, a small business consulting firm. The partners are not related and are all U.S. citizens.

Two-tailed test for point effect : If the population standard deviation is σ = 20 is the 6 point effect large enough to be statistically significant? Use the two - tailed test with α = .05

Compare and contrast fatty acid synthesis : Compare and contrast fatty acid synthesis and breakdown with respect to.

User Account

All Pages