negative num ers would indicate that you should expect to lose a given mount on average). (3) An insurance company charg

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answerhappygod
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negative num ers would indicate that you should expect to lose a given mount on average). (3) An insurance company charg

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Negative Num Ers Would Indicate That You Should Expect To Lose A Given Mount On Average 3 An Insurance Company Charg 1
Negative Num Ers Would Indicate That You Should Expect To Lose A Given Mount On Average 3 An Insurance Company Charg 1 (43.92 KiB) Viewed 35 times
negative num ers would indicate that you should expect to lose a given mount on average). (3) An insurance company charges you $250 a year for an auto insurance policy. Assume the actual probability that you get in an accident during this year is .02 and that if you do get into an accident, the company will have to pay out $10,000 (i.e. they will receive $250 but lose $10,000 for a net loss of $9,750) and if you don't get into an accident the company gains the $250 you pay and loses nothing. (a) What is the expected value to the company of this policy? (b) What is the variance of the company's earnings from this policy? (C) What is the standard deviation of the company's earnings from this policy?
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