Concept explainers
Hospitalization Insurance An insurance policy pays an individual $100 per day for up to 3 days of hospitalization and $25 per day for each day of hospitalization thereafter. The number of days of hospitalization, X, is a discrete random variable with probability function
Calculate the expected payment for hospitalization under this policy. Choose one of the following. Source: Society of Actullries.
- (a) $85
- (b) $163
- (c) $168
- (d) $213
- (e) S255
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Finite Mathematics and Calculus with Applications (10th Edition)
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