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 $250000 and the probability that fire destroys the house during the length of the policy is estimated to be 0.1%. Let X be the insurance company's profit. Answer the following questions: 1. Create the probability distribution table for X : X outcome a. E[X] = μx b. SD[X]=ox profit ,$ P(X= x) the house is destroyed the house survived 2. Use the probability distribution table to find the following: -250001 X 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.)
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 $250000 and the probability that fire destroys the house during the length of the policy is estimated to be 0.1%. Let X be the insurance company's profit. Answer the following questions: 1. Create the probability distribution table for X : X outcome a. E[X] = μx b. SD[X]=ox profit ,$ P(X= x) the house is destroyed the house survived 2. Use the probability distribution table to find the following: -250001 X 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.)
Chapter8: Sequences, Series,and Probability
Section: Chapter Questions
Problem 41CT: On a game show, a contestant is given the digits 3, 4, and 5 to arrange in the proper order to form...
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![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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa09944f7-8526-43f5-b427-0b240d43f569%2F6b21dd38-9052-466b-a11f-94f6c8a7abe6%2Feb1lxdpl_processed.png&w=3840&q=75)
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.)
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