Pearson eText for Probability and Statistical Inference -- Instant Access (Pearson+)
10th Edition
ISBN: 9780137538461
Author: Robert Hogg, Elliot Tanis
Publisher: PEARSON+
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Textbook Question
Chapter 3.4, Problem 14E
A customer buys a $1000 deductible policy on her $31,000 car. The
(a) What is the probability that the insurance company must pay the customer more than $2000?
(b) What does the company expect to pay?
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Students have asked these similar questions
The probability that the return will be below X% is approx. 0.16. What is the value of X for Stock A? For Stock B?
Gabrielle has purchased the 2-year extended warranty from a retailer to cover the value of hers new cellphone in case if it gets damaged or becomes inoperable for the price of $25. Gabrielle's cellphone is worth $1400 and the probability that it gets damaged or becomes inoperable during the length of the extended warranty is estimated to be 4%. Let XX be the retailer's profit from selling the extended warranty. Answer the following questions:
1. Create the probability distribution table for XX :
XX
outcome
profit xx ,$
P(X=x)P(X=x)
the cellphone gets damaged or becomes inoperable
no claim filed
2. Use the probability distribution table to find the following:
E[X]=μX=E[X]=μX= dollars. (Round the answer to 1 decimal place.)
SD[X]=σX=SD[X]=σX= dollars. (Round the answer to 1 decimal place.)
In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000). The table also shows the probability of earning that profit. The negative value indicates a loss.
x
f(x)
x = profit
-100
0.01
f(x) = probability
-200
0.04
0
100
0.26
200
0.54
300
0.05
400
0.02
11
If we add $45 to each value in the profit/loss column above, the new expected value of profit will be,
a
$201
b
$197
c
$193
d
$189
Chapter 3 Solutions
Pearson eText for Probability and Statistical Inference -- Instant Access (Pearson+)
Ch. 3.1 - Show that the mean, variance, and mgf of the...Ch. 3.1 - Let X be a continuous random variable with pdf...Ch. 3.1 - Customers arrive randomly at a bank tellers...Ch. 3.1 - If the mgf of X is M(t)=e5te4tt,t0andM(0)=1,, find...Ch. 3.1 - Let Y have a uniform distribution U(0,1), and let...Ch. 3.1 - A grocery store can order n watermelons from a...Ch. 3.1 - For each of the following functions, (i) find the...Ch. 3.1 - For each of the following functions, (i) find the...Ch. 3.1 - Prob. 9ECh. 3.1 - The pdf of X is f(x)=cx2,1x. (a) Calculate the...
Ch. 3.1 - The pdf of Y is g(y)=cy3,1y. (a) Calculate the...Ch. 3.1 - Sketch the graphs of the following pdfs and find...Ch. 3.1 - The logistic distribution is associated with the...Ch. 3.1 - Find the variances of each of the distributions...Ch. 3.1 - The life X (in years) of a voltage regulator of a...Ch. 3.1 - Let f(x)=(x+1)2,1x1. Find (a) 0.64, (b) q1=0.25,...Ch. 3.1 - An insurance agent receives a bonus if the loss...Ch. 3.1 - Prob. 18ECh. 3.1 - The total amount of medical claims (in $100000) of...Ch. 3.1 - Nicol (see References) lets the pdf of X be...Ch. 3.1 - Let X1,X2,...,Xk be random variables of the...Ch. 3.2 - Prob. 1ECh. 3.2 - Telephone calls arrive at a doctors office...Ch. 3.2 - Let X have an exponential distribution with mean...Ch. 3.2 - Let F(x) be the cdf of the continuous-type random...Ch. 3.2 - There are times when a shifted exponential model...Ch. 3.2 - A certain type of aluminum screen 2 feet in width...Ch. 3.2 - Find the moment-generating function for the gamma...Ch. 3.2 - If X has a gamma distribution with =4 and =2, find...Ch. 3.2 - If the moment-generating function of a random...Ch. 3.2 - Use the moment-generating function of a gamma...Ch. 3.2 - Let X have a gamma distribution with parameters ...Ch. 3.2 - Let X equal the number of alpha particle emissions...Ch. 3.2 - If X is x2(23), find the following: (a)...Ch. 3.2 - If X is x2(12), find constants a and b such that...Ch. 3.2 - Prob. 15ECh. 3.2 - Cars arrive at a tollbooth at a mean rate of five...Ch. 3.2 - If 15 observations are taken independently from a...Ch. 3.2 - Say the serum cholesterol level (X) of U.S. males...Ch. 3.2 - A bakery sells rolls in units of a dozen. The...Ch. 3.2 - The initial value of an appliance is $700 and its...Ch. 3.2 - A loss (in $100000) due to fire in a building has...Ch. 3.2 - Find the index of skewness of the x2(r)...Ch. 3.2 - Some dental insurance policies cover the insurer...Ch. 3.3 - If Z is N(0,1), find (a) P(0.47Z2.13). (b)...Ch. 3.3 - If Z is N(0,1), find (a) P(0Z0.78). (b) P(2.46Z0)....Ch. 3.3 - If Z is N(0,1), find values of c such that (a)...Ch. 3.3 - Find the values of (a) z0.10, (b) z0.05, (c)...Ch. 3.3 - If X is normally distributed with a mean of 6 and...Ch. 3.3 - If the moment-generating function of X is...Ch. 3.3 - If X is N(650,400), find (a) P(600X660). (b) A...Ch. 3.3 - Prob. 8ECh. 3.3 - Find the distribution of W=X2 when (a) X is...Ch. 3.3 - If X is N(,2) show that Y=aX+b is N(a,+b,a22),a0,...Ch. 3.3 - A candy maker produces mints that have a label...Ch. 3.3 - Prob. 12ECh. 3.3 - The serum zinc level X in micrograms per deciliter...Ch. 3.3 - The strength X of a certain material is such that...Ch. 3.3 - The fill problem is important in many industries,...Ch. 3.3 - The graphs of the moment-generating functions of...Ch. 3.3 - Prob. 17ECh. 3.4 - Let the life W (in years) of the usual family car...Ch. 3.4 - Suppose that the length W of a mans life does...Ch. 3.4 - Let Y1 be the smallest observation of three...Ch. 3.4 - Prob. 4ECh. 3.4 - Let X be a random variable of the mixed type...Ch. 3.4 - Let X be a random variable of the mixed type...Ch. 3.4 - Prob. 7ECh. 3.4 - Find the mean and variance of X if the cdf of X is...Ch. 3.4 - Consider the following game: A fair die is rolled....Ch. 3.4 - Prob. 10ECh. 3.4 - Prob. 11ECh. 3.4 - Let X have an exponential distribution with =1;...Ch. 3.4 - A loss X on a car has a mixed distribution with...Ch. 3.4 - A customer buys a $1000 deductible policy on her...Ch. 3.4 - A certain machine has a life X that has an...Ch. 3.4 - Prob. 16ECh. 3.4 - Some banks now compound daily, but report only on...Ch. 3.4 - Prob. 18ECh. 3.4 - Prob. 19ECh. 3.4 - Let X be the failure time (in months) of a certain...Ch. 3.4 - In a medical experiment, a rat has been exposed to...
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