Insurance. The annual premium for a $20,000 insurance policy against the theft of a painting is $300. If the (empirical) probability that the painting will be stolen during the year is .03, what is yourexpected return from the insurance company if you take out this insurance?a. Let X be the random variable for the amount of money received from the insurance company in the given year. Complete the payoff table for the random variable X.(Enter the values for the painting being stolen first.).(Type probabilities as decimals.)P₁

We have given that Return values = 20000 - 300, -300 = 19700, -300 And,…

Answered: Insurance. The annual premium for a…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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When practicing basketball, Rachel has a 67% chance of making a free throw. She shoots 12 free throws. Let the random variable X be the number of free throws she makes. Find the probability she makes exactly 5 free throws. Give your answer to at least three nonzero decimal places. What is the expected value of X. Interpret this value.
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4.43 Consider the probability distribution for the random vari- able x shown here: 2 .4 10 .2 1 4 P(x) 2
A. A recent study found that 2% of Americans admitted they had driven while intoxicated in the prior month. If a problem asks you to find the probability that 200 or fewer people in a population of 10,000 drive under the influence of alcohol, how do you solve the problem after finding the probability in the z-table? A. Subtract one from the probability you find in the z-score tables B. The probability that equates to the z-score is the answer C. Tis problem cannot be answered with the z-tables D. Take the probability you find in the z-score tables and subtract from one
Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $17. If you roll a 3, 4 or 5, you win $5. Otherwise, you pay $6. a. Complete the PDF Table. List the X values, where X is the profit, from smallest to largest. Round to 4 decimal places where appropriate. Probability Distribution Table P(X) nd b. Find the expected profit. (Round to the nearest cent) c. Interpret the expected value. Of you play many games you will likely win on average very close to $3.33 per game. O You will win this much if you play a game. O This is the most likely amount of money you will win. or d. Based on the expected value, should you play this game? O Yes, since the expected value is positive, you would be very likely to come home with more money if you played many games. O Yes, since the expected value is 0, youvould be very likely to come very close to breaking even if you played many games, so you might as well have fun at no cost. No, since the expected…
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A marketing company has randomly surveyed 204 men who watch professional sports. The men were separated according to their educational level (college degree or not) and whether they preferred the NBA or the National Football League (NFL). The results of the survey are shown to the right. Complete parts a through d. Sports Preference NBA College Degree 36 No College O Degree 58 NFL 19 91 a. What is the probability that a randomly selected survey participant prefers the NFL? (Round to four decimal places as needed.) b. What is the probability that a randomly selected survey participant has a college degree and prefers the NBA? (Round to four decimal places as needed.) c. Suppose a survey participant is randomly selected and you are told that he has a college degree. What is the probability that this man prefers the NFL? (Round to four decimal places as needed.) d. Is a survey participant's preference for the NBA independent of having a college degree? No. The two events are not…
5. (Solve using pen and paper) Cans of salmon are supposed to have a net weight of 6 oz. The canner says that the net weight is a random variable with mean m=6.05 oz. and stand. dev. s=.18 oz. Suppose you take a random sample of 36 cans and calculate the sample mean weight to be 5.97 oz. a. Find the probability that the mean weight of the sample is less than or equal to 5.97 oz.
In Izmir University of Economics, a statistics professor has office hours from 9:00 AM to 10:00 AM each day in 2020. The number of students waiting to see the professor is a random variable, X, with the distribution shown in the table. 1 2 3 4 P(X= x) 0.05 0.10 0.40 0.25 0.15 0.05 The professor gives each student 10 minutes. Determine the probability that a student arriving just after 9:00 AM will have to wait at least 30 minutes to see the professor. O A. 0.25 О В. 0.45 O C. 0.85 O D. 0.15
WFC Average St. Dev. Min 0.65% 10.26% -28.99% Мах 27.51% 25. Based on the table above, what is the probability of losing -7% or more for WFC? A. 0.07 B. 0.14 C. 0,23 D. 0.29 %3D E. 0.31 26. If you have $200,000 invested in WFC, what is the dollar value of VaR of losing -7% or more? A. $14,000 B. $28,000 C. $46,000 D. $58,000 E. $62,000 27. Based on the table above, there is 30% chance that your losses for WFC will be greater than A. -0,30% B. 2.15% C. 4.73% D. 7% E. -14% 28. Based on the table above, there is 30% chance that your dollar losses for WFC will be greater than if you have $200,000 invested in ti? A. -S600 B. $4,300 C. -$9,460 D. -$14,000 E. S28,000
About 2.5% of Canadians have blood type AB. If 25 Canadians are selected randomly, ving. The exact probability that less than 2 have blood type AB. The exact probability that 23 have blood type other than AB. The approximate probability that at least one has blood type AB.
Determine whether the given procedure results in a binomial distribution. Tossing a coin 25 times and recording the number of tails you get.

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