Hanita has purchased the insurance policy from an insurance company to cover the value of hers new car in case if it gets totaled for the price of $1500 per year. Hanita's car worth $20000 and the probability of her totaling the car during the length of the policy is estimated to be 0.6%. Let XX be the insurance company's profit. Answer the following questions: 1. Create the probability distribution table for XX : XX outcome profit xx ,$ P(X=x)P(X=x) car is totaled car is not totaled 2. Use the probability distribution table to find the following: 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.)
Hanita has purchased the insurance policy from an insurance company to cover the value of hers new car in case if it gets totaled for the price of $1500 per year. Hanita's car worth $20000 and the
1. Create the probability distribution table for XX :
| XX | outcome | profit xx ,$ | P(X=x)P(X=x) |
| car is totaled | |||
|
car is not totaled |
2. Use the probability distribution table to find the following:
-
- 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.)
From the provided information,
An insurance company to cover the value of hers new car in case if it gets totaled for the price of $1500 per year.
Hanita's car worth $20000 and the probability of her totaling the car during the length of the policy is estimated to be 0.6%.
Probability that car is totaled = 0.006
Probability that car is not totaled = 1 - 0.006 = 0.994
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