1. ANSWER THE WORD PROBLEM AT THE END TOO

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The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance follows. Payment ($) Probability 0 0.84 500 0.05 1,000 0.04 3,000 0.03 5,000 0.02 8,000 0.01 10,000 0.01 a. Use the expected colision payment to determine the collision Insurance premium that would enable the company to break even. b. The insurance company charges an annual rate of $516 for the collision coverage. What is the expected value of the collision policy for a policyholder? (Hint: It is the expected payments from the company minus the cost of coverage.) Enter negative values as negative numbers Why does the policyholder purchase a collision policy with this expected value? The policyholder is concerned that an accident will result in a big repair bill in there - Select your answer Insurance coverage. So even though the policyholder has an expected annual loss of $ the insurance Select your answer against a large loss. Market-share-analysis company Net Applications monitors and reports on Internet browser usage. According to Net Applications, in the summer of 2014, Google's Chrome browser exceeded a 20% market share for the first time, with a 20.37% share of the browser market (Forbes website). For a randomly selected group of 20 Internet browser users, answer the following questions. a. Compute the probability that exactly 8 of the 20 Internet browser users use Chrome as their internet browser (to 4 decimals). For this question. If you compute the probability manually, make sure to carry at least six decimal digits in your calculations. b. Compute the probability that at least 3 of the 20 Internet browser users use Chrome as their Internet browser (to 4 decimals). c. For the sample of 20 Internet browser users, compute the expected number of Chrome users (to 3 decimals). 1 d. For the sample of 20 Internet browser users, compute the variance and standard deviation for the number of Chrome users (to 3 decimals). Variance Standard deviation