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Based on the survey results given to 2184 insurance companies, collision insurance paid is as follows: Payment ($) Number of Insurance Companies 0 5 500
Based on the survey results given to 2184 insurance companies, collision insurance paid is as follows: | |||||||||
Payment ($) | Number of Insurance Companies | ||||||||
0 | 5 | ||||||||
500 | 45 | ||||||||
1000 | 350 | ||||||||
3000 | 681 | a) | Develop a probability distribution for the payment. | ||||||
5000 | 753 | b) | Use the expected collision payment to determine the collision insurance premium | ||||||
8000 | 205 | that would enable the company to break even. | |||||||
10000 | 145 | c) | Compute the variance of payment. |
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