Question 8John Lloyd has purchased the insurance policy from an insurance company to cover the value of his housein case if it gets destroyed due to a fire for the price of $2500 per year. John Lloyd's house is worth $250000and the probability that fire destroys the house during the length of the policy is estimated to be 0.1%. LetX be the insurance company's profit. Answer the following questions:1. Create the probability distribution table for X :Xa. E[X] = μxb. SD[X] = 0Xoutcome=the house is destroyedthe house survivedprofit ,$ P(X= x)-250001 X2. Use the probability distribution table to find the following:25000.0010.9992247.5✔ dollars. (Round the answer to 1 decimal place.)7980.8 x dollars. (Round the answer to 1 decimal place.)

given data insurance cover premium : $2500 house worth : $250000 P(destroy) = 0.1% = 0.001 if…

Answered: John Lloyd has purchased the insurance…

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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