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b, Suppose you own the entire fum, and the compary issues only one policy What are the expected value, variance, and standart deviabori of your

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b, Suppose you own the entire fum, and the compary issues only one policy What are the expected value, variance, and standart deviabori of your profit? (Do not round intermediate colculations. Round your standard deviation to the nearest whole numbec) c. Now suppose your company issues two policies. The risk of fire biridependent across the tho policies. Make a table of the three porsublepsyouts along with their associated probabdities. (Nejotive answers should be indicoted with o minus sign. Round your "Probobllity" answers to 4 decimal pleces. Neighborhood insurance sells fre ensurance policies to local homeowners The premaim is 5310 , the probability of a fire is oth, and in the event of a fire, the insured damages the payout on the policyl will be $300,000 Required: a. Make a toble of the two possible payouts on each policy with the probability of each. (Negotive enswers should be indicated with e minus sions b. Suppose you own the entre firm, and the company issues only one policy What are the expected value, variance, and standard devation of your profit? (Oo not round intermediate colculations. Aovnd your stenderd devietion to the neorest whole number) d. What are the expected value, variance, and standard devation of your protit? (Do not round intermediate calculotions. Round your itondard deviation to the neorest whole number, e. Compare your answeis to (b) and (d). Did mk pooling increase or decresse the variance of your profit? 1. Continue to assume the compary has issued two policies, but now assume you take on a partiner, so that you each own one half of the firm. Make a table of your shave of the possible payouts the company may have to make on the two policies, along with their Jssocisted probabitiles (Negotive answers should be indicoted with e minus sign. Round your "Probobility" answers to 4 decimel ploces) 9. What are ve expected value and variance of your profit

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