You purchase a workers' compensation insurance policy to protect against accidents at your workplace. If you have a serious accident, the policy will pay you $279,000. If you have a mild accident, the policy will pay you $139,500. The premium for the policy is $6,700. Based on your work environment's history, the probability of a serious accident is 0.005, and theprobability of a mild accident is 0.014.Let X be the insurance company's net gain or loss on the policy described.(a) Create a probability distribution for X. Enter the possible values of X in ascending order from left to right.XP(X)-67000.981XX1395000.014X2790000.005XX(b) Compute the company's expected net gain on this policy. Round your answer to the nearest cent.$ 9920.7X

For a serious accident, the policy will pay $279,000.For mild accident, the policy will pay…

Answered: robability of a mild accident is 0.014.…

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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Peter the Anteater sometimes walks around UCI's campus. The probability that you see Peter during any given day is 0.0689. Let X be the number of days you walk through campus before you see Peter the Anteater. (a) What distribution does X follow? What assumptions do you need to make to say that X has this distribution? (b) Compute the expected number of weeks from now until you see Peter the Anteater. (Make sure to identify the units.) (c) What is the variance and standard deviation of the number of days until you see Peter the Anteater? Provide the appropriate units and answer rounded to 3 decimal places. (d) What is the probability that when you see Peter the Anteater it is during your midterms in about 3 weeks, or 21 days? Round your answer to 3 sig figs.
An insurance company sells 40% of its renters policies to home renters and the remaining 60% to apartment renters. Among home renters, the time from policy purchase until policy cancellation has an exponential distribution with mean 4 years, and among apartment renters, it has an exponential distribution with mean 2 years. Calculate the probability that the policyholder is a home renter, given that a renter still has a policy one year after purchase. (A) 0.08 (B) 0.27 (C) 0.46 (D) 0.56 (E) 0.66
Determine whether the following are valid probability distributions or not. Type "VALID" if it is valid, or type "INVALID" if it is not a valid probability distributions. (а) 3 4 6 9 P(x)0.40.20.2 0.2 answer: (b) P(æ): where x = 5x 1,2, 3, ... answer: (c) 3 4 6 9. P(x)00.1-0.3 1.2 answer:
The exponential distribution has some specific values in statistics. For example, if its rate is A then the expectation is 1/A. A generator generates electricity for a system with energy storage. If the generator fails, the system runs out of energy exactly five days later. Let the time to failure X for the generator be exponentially distributed with expectation value of 600 days while Y denotes the time until the system runs out of energy (five days later). 1. What is the probability P that the generator will fail within the first 600 days? 2. What is the quantile of the random variable Y with this probability? 3. Calculate the coefficients of variation for X and Y.
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I. Which of the following are discrete probability distributions? (Yes or No) 1. 4 P(x) 0.10 0.20 0.25 0.40 0.05 2. 2. 3 4 5 P(x) 0.05 0.25 0.33 0.28 0,08 3. 3 4 5 P(x) 0.08 0.25 0.34 0.31 0.04 4. 2 3 4 5 P(x) 0.03 0.22 1.01 0.23 0.02 5. 1 2 3 4 P(x) 0,05 0.27 0.34 0,28 0.06 6. 3 4 5 P(x) 3 3 10 10 10 7. 3 4 P(x) 15 15 8. 3 4 5 P(x) 25 25 25 25 9. 3 4 P(x) 7. 1 10 10 20 20 10. 2. 3 4 5 P(x) 0.212 0.113 0,125 0.224 0.306
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I. Which of the following are discrete probability distributions? (Yes or No) 1. 3 4 5 P(x) 0.10 0.20 0.25 0.40 0.05 2. 3 4 P(x) 0,05 0.25 0,33 0.28 0,08 3. 4 5 P(x) 0.08 0.25 0.34 0.31 0,04 4. 2 3 4 5 P(x) 0.03 0.22 1.01 0.23 0.02 5. 3 4 5 P(x) 0.05 0.27 0.34 0.28 0.06 6. 2 3 4 5 P(x) 1 3 3 10 10 10 7. 3. 4 P(x) 15 15 8. 2 4 5 6 P(x) 4. 25 25 25 25 9. 3 4 P(x) 1. 3. 20 20 1 10 10 10. 1 3 4 P(x) 0.212 0.113 0.125 0.224 0.306 -
Calls arrive at Lynn Ann Fish's hotel switchboard at a rate of 2.0per minute. The average time to handle each is 15 seconds. There is only one switchboard operator at the current time. The Poisson and negative exponential distributions appear to be relevant in this situation. a) The probability that the operator is busy = (round your response to two decimal places).
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Suppose that each day the price of a stock moves up (1/8)th of appoint with probability 1/3 and moves down (1/8)th of a point with probability 2/3. Suppose that price fluctuations from one day to another are independent. What is the probability that after six days, the stock has its original price?
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