Homework Help is Here – Start Your Trial Now!
Math
Statistics
E[X]=μX=E[X]=μX= dollars. (Round the answer to 1 decimal place.)  SD[X]=σX=SD[X]=σX= dollars. (Round the answer to 1 decimal place.)

E[X]=μX=E[X]=μX= dollars. (Round the answer to 1 decimal place.)  SD[X]=σX=SD[X]=σX= dollars. (Round the answer to 1 decimal place.)

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question

María Victoria has purchased the insurance policy from an insurance company to cover the value of hers house in case if it gets destroyed due to a fire for the price of $2300 per year. María Victoria's house is worth $370000 and the probability that fire destroys the house during the length of the policy is estimated to be 0.5%. Let XX  be the insurance company's profit. Answer the following questions:

1. Create the probability distribution table for XX :

 XX  outcome profit xx ,$  P(X=x)P(X=x) 
  the house is destroyed    
 

the house survived

    

2. Use the probability distribution table to find the following:

    1.  E[X]=μX=E[X]=μX= dollars. (Round the answer to 1 decimal place.)
    2.  SD[X]=σX=SD[X]=σX= dollars. (Round the answer to 1 decimal place.)
Expert Solution
Introduction
Simply multiply each value of the discrete random variable by the probability associated with 
that value to obtain the expected value, E(X), or mean. 
Given is the formula:
 
E(X)=μ=∑xP(x)
 

To find the standard deviation, σ, of a discrete random variable X, simply take the square root of the variance

SD=Var(x)where Var(x)=E(x2)-[E(x)]2

 

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS