A customer for a home insurance policy owns a $200,000 home. The probability is 0.1% that the home will be totally destroyed by fire, and the probability is 0.5% that the home will suffer a 50% loss due to fire. Ignoring all other partial losses, the insurance company is interested in determining what premium it should charge for a policy just to break even? Let ? = ?ℎ? ?????? ?? ???????????? ???? ?? ?ℎ? ????????. Calculate the premium that the insurance company should charge for a policy to break even. Hint: use the probability distribution table you made to find the sample space of the r.v. X
A customer for a home insurance policy owns a $200,000 home. The probability is 0.1% that the home will be totally destroyed by fire, and the probability is 0.5% that the home will suffer a 50% loss due to fire. Ignoring all other partial losses, the insurance company is interested in determining what premium it should charge for a policy just to break even? Let ? = ?ℎ? ?????? ?? ???????????? ???? ?? ?ℎ? ????????. Calculate the premium that the insurance company should charge for a policy to break even. Hint: use the probability distribution table you made to find the sample space of the r.v. X
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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