3. The number of major snowstorms that shut down business, X, has the following probability mass function (pmf) I = 1,2, 3, 4, 5 P(X = 1) = otherwise. An insurance company pays 10,000 per day, i.e., pays 10,000, 20,000, 30,000, 40,000, 50,000, if r 1, 2, 3, 4, 5, respectively. Find the expected amount paid by the insurance company.
3. The number of major snowstorms that shut down business, X, has the following probability mass function (pmf) I = 1,2, 3, 4, 5 P(X = 1) = otherwise. An insurance company pays 10,000 per day, i.e., pays 10,000, 20,000, 30,000, 40,000, 50,000, if r 1, 2, 3, 4, 5, respectively. Find the expected amount paid by the insurance company.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
3
![3.
The number of major snowstorms that shut down business, X, has the
following probability mass function (pmf)
* 1= 1,2,3, 4, 5
P(X = x) =
otherwise.
An insurance company pays 10,000 per day, i.c., pays 10,000, 20,000, 30,000, 40,000,
50,000, if r 1, 2, 3, 4, 5, respectively. Find the expected amount paid by the
insurance company.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F022654e1-be4a-45b5-b233-3d8dac2643d3%2Fdc2a7e08-b341-4128-934f-1a83e901e6b0%2Fvntd5dk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3.
The number of major snowstorms that shut down business, X, has the
following probability mass function (pmf)
* 1= 1,2,3, 4, 5
P(X = x) =
otherwise.
An insurance company pays 10,000 per day, i.c., pays 10,000, 20,000, 30,000, 40,000,
50,000, if r 1, 2, 3, 4, 5, respectively. Find the expected amount paid by the
insurance company.
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