You purchase a brand new car for $10500 and insure it. The policy pays 80% of the car's value if there is an issue with the engine or 27% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.008, and the probability there is an issue with the speaker system is 0.017. 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. X P(X) b. Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent. $ 0
You purchase a brand new car for $10500 and insure it. The policy pays 80% of the car's value if there is an issue with the engine or 27% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.008, and the probability there is an issue with the speaker system is 0.017. 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. X P(X) b. Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent. $ 0
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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![You purchase a brand new car for $10500 and insure it. The policy pays 80% of the car's value if there is an issue with the engine or 27% of the car's value if there is an issue with the speaker
system. The probability of an issue with the engine is 0.008, and the probability there is an issue with the speaker system is 0.017. 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.
$ 0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6f6ac63-5ffd-44ee-bd79-22a86ec00c24%2F411a8a88-84dc-4c75-a571-62a3eed16686%2Fpimsf7r_processed.png&w=3840&q=75)
Transcribed Image Text:You purchase a brand new car for $10500 and insure it. The policy pays 80% of the car's value if there is an issue with the engine or 27% of the car's value if there is an issue with the speaker
system. The probability of an issue with the engine is 0.008, and the probability there is an issue with the speaker system is 0.017. 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.
$ 0
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