MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
Bartleby Related Questions Icon

Related questions

Question
100%
Question 8
John Lloyd has purchased the insurance policy from an insurance company to cover the value of his house
in case if it gets destroyed due to a fire for the price of $2500 per year. John Lloyd's house is worth $250000
and the probability that fire destroys the house during the length of the policy is estimated to be 0.1%. Let
X be the insurance company's profit. Answer the following questions:
1. Create the probability distribution table for X :
X
a. E[X] = μx
b. SD[X] = 0X
outcome
=
the house is destroyed
the house survived
profit ,$ P(X= x)
-250001 X
2. Use the probability distribution table to find the following:
2500
0.001
0.999
2247.5✔ dollars. (Round the answer to 1 decimal place.)
7980.8 x dollars. (Round the answer to 1 decimal place.)
expand button
Transcribed Image Text:Question 8 John Lloyd has purchased the insurance policy from an insurance company to cover the value of his house in case if it gets destroyed due to a fire for the price of $2500 per year. John Lloyd's house is worth $250000 and the probability that fire destroys the house during the length of the policy is estimated to be 0.1%. Let X be the insurance company's profit. Answer the following questions: 1. Create the probability distribution table for X : X a. E[X] = μx b. SD[X] = 0X outcome = the house is destroyed the house survived profit ,$ P(X= x) -250001 X 2. Use the probability distribution table to find the following: 2500 0.001 0.999 2247.5✔ dollars. (Round the answer to 1 decimal place.) 7980.8 x dollars. (Round the answer to 1 decimal place.)
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Text book image
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Text book image
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Text book image
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
Text book image
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Text book image
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman