An insurance company found that 2.4% of male drivers between the ages of 18 and 25 are involved in serious accidentsannually. To simplify the analysis, assume that every such accident costs the insurance company $62,000 and that adriver can only have one of these accidents in a year. Complete parts (a) through (c).(a) If the company charges $2,600 for such coverage, what is the chance that it loses money on a single policy?P(loses money)= .024 (Type an integer or a decimal.)(b) Suppose that the company writes 1,000 such policies to a collection of drivers. What is the probability that thecompany makes a profit on these policies? Assume that the drivers don't run into each other and behave independently.P(profit) = .976 (Round to five decimal places as needed.)

2.4% of male drivers of ages between 18 and 25 are involved in serious accidents.Every accident…

Answered: An insurance company found that 2.4% of…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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