Answered: You purchase a brand new car for $10500…

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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$**Problem Statement:** You purchase a brand new car for $10,500 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. 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:** - [Text Box] - [Text Box] - [Text Box] - **P(X):** - [Text Box] - [Text Box] - [Text Box] **b. Minimum Amount for the Policy:** Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent. - **$ [Text Box]**$

Transcribed Image Text:**Problem Statement:** You purchase a brand new car for $10,500 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. 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:** - [Text Box] - [Text Box] - [Text Box] - **P(X):** - [Text Box] - [Text Box] - [Text Box] **b. Minimum Amount for the Policy:** Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent. - **$ [Text Box]**

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