Let X be the damage incurred (in $) in a certain type of accident during a given year. Possible X values are 0, 1000, 5000, and 10000, with probabilities 0.84, 0.08, 0.06, and 0.02,respectively. A particular company offers a $500 deductible policy. If the company wishes its expected profit to be $100, what premium amount should it charge?

Consider X be the damage incurred in a certain type of accident during a given year. The probability…

Answered: Let X be the damage incurred (in $) in…

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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An amount of $10,000 is to be invested for three years. The yield rate for the first year will be equally likely to be 5%, 6%, 7%, 8% or 9%; for the second year will be equally likely to be 7% or 9%; for the third year will be 7%, 8% or 9% with probabilities 0.3, 0.5 and 0.2, respectively. The yield rates in different years are independent. Find the probability that the accumulation of the investment for the three years will be greater than its expected value.
(cash prize, $) Grand prize P(x) For a multistate lottery, the following probability distribution represents the cash prizes of the lottery with their corresponding probabilities. Complete parts (a) through (c) below. 0.00000000687 200,000 0.00000034 10,000 100 0.000001846 0.000146681 0.004408777 4 0.007671659 0.01847131 0.96929938013 3
2.) Colulate the absolute uncertainty for each of the measured uncer tainty for each, Report the measuteol value 95,d Cônfidente interval inthe lost column o Follow the follow the ! cules for ceporting confidence inter vals. quandities listed below Oaiven the rellotive Quantity lame Valce Relahive U Length,x Speed V heekration a Abso lute అక్కగాంక Interval Unvedainly 182.537um 0.O10 8.56"s 0.010 19.6 3 0.0030 Force, F 803.6W 0020 Index, of Refeardion,n [.53 (nounitsy o. 05o
You purchase a brand new car for $15,000 and insure it. The policy pays 78% of the car's value if there is an issue with the engine or 30% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.009, and the probability there is an issue with the speaker system is 0.02. The premium for the policy is p. Let X be the insurance company's net gain from this policy. (a) Create a probability distribution for X, using p to represent the premium on the policy. Enter the possible values of X in ascending order from left to right. P(X) (b) Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent
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A lottery offers one $800 prize, two $700 prizes, three $400 prizes, and four $200 prizes. One thousand tickets are sold at $5 each. Find the expectation if a person buys three tickets. Assume that the player's ticket is replaced after each draw and that the same ticket can win more than one prize. Round to two decimal places for currency problems. The expectation if a person buys three tickets is ___ dollar(s)

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