You purchase a brand new car for $17250 and insure it. The policy pays 61% of the car's value if there is an issue with the engine or 24% 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 0.025. 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. 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.

You purchase a brand new car for $17250 and insure it. The policy pays 61% of the car's value if there is an issue with the engine or 24% 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 0.025. 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. 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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Description: You purchase a brand new car for $17250 and insure it. The policy pays 61% of the car's value if there is an issue with the engineor 24% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is

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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Concept explainers

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

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Transcribed Image Text:You purchase a brand new car for $17250 and insure it. The policy pays 61% of the car's value if there is an issue with the engine or 24% 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 0.025. 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. 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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$Discrete Probability Distributions$

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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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