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 $6,500. Based on your work environment's history, the probability of a serious accident is 0.007, and the probability 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 Xx P(X) (b) Compute the company's expected net gain on this policy. Round your answer to the nearest cent
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 $6,500. Based on your work environment's history, the probability of a serious accident is 0.007, and the probability 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 Xx P(X) (b) Compute the company's expected net gain on this policy. Round your answer to the nearest cent
Chapter8: Sequences, Series,and Probability
Section: Chapter Questions
Problem 41CT: On a game show, a contestant is given the digits 3, 4, and 5 to arrange in the proper order to form...
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![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 $6,500. Based on your work environment's history, the probability of a serious accident is 0.007, and
the probability 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.
X
P(X)
(b) Compute the company's expected net gain on this policy. Round your answer to the nearest cent](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa682c93-b824-4ece-9034-f00608f55fd8%2F2c6a3db6-e90b-4cf5-9a3e-3a6b0da940e1%2Fyxscahf_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $6,500. Based on your work environment's history, the probability of a serious accident is 0.007, and
the probability 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.
X
P(X)
(b) Compute the company's expected net gain on this policy. Round your answer to the nearest cent
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