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A health insurance policy covers the cost of anesthesia, denoted by X, and the cost of surgery, denoted by Y. The joint distribution of X
A health insurance policy covers the cost of anesthesia, denoted by X, and the cost of surgery, denoted by Y. The joint distribution of X and Y is modeled as bivariate normal, with: o E(X) 2 px = 1000 . 0X 2 ,/VaI(X) = 500 . E(Y) = W = 20,000 . 0'}! = '/Var (Y) = 1000 . E(XY) = 20, 350, 000 The policy will only pay a \"reasonable expense\" for the cost of surgery, dened as no more than the 75-th percentile of the conditional distribution of Y given the value of X. For a given patient, the cost of anesthesia is 1200. Find the maximum amount paid for the surgery. Possible Answers
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