C1. Explain how the probability distribution of the sum of two fair dice is computed. Write this up as if you are explaining it to friend not in this class. Use the terms "sample point" "sample space." C2. Select a starting position on the Monopoly board other KNOWWOD than Pacific Ave. Place at least one house and one 153HD hotel within the range of your roll, where "a roll" is the sum of two dice. The rent you must pay when landing on a property is shown on the Deed card. WALK MEDITER. Assume you do not own any of the properties in that RANEAN AVENUE BOARDW neighborhood. For simplicity, count landing on COLLECT Chance or on Community Chest to result in a $0 $ 200.00 SALARY outcome. Let the term payout denote the amount of money you pay on the next roll. Construct the AS YOU PASS probability distribution of the payout, explaining what you have doing to your patient friend. C3. Explain how the expected value and variance of the payout is computed from the payout probability distribution. Explain how the expected value of your payout is related to what would occur in the long-run, under many replications. C4. Suppose you could buy insurance from The Dog and Slipper Insurance Company to cover you against the possible payout of the next roll. Explain how the expected value, above, is related to the pricing of that insurance. (The name of this fictional insuror is based on the dog and slipper playing pieces in the above photo.) C5. Explain how and why it would benefit The Dog and Slipper Insurance Company to exchange slices of similar insurance contracts with other insurors. This business practice is called "reinsurance" and you are welcome to see what Wikipedia and Investopedia have to say on the subject. Fortunately, you have access to parallel results in your clearly defined work in constructing and analysing a portfolio gamble in roulette. You are welcome to employ the numeric values you or I got in earlier material to orient your explanation. But, please don't try to compute the probability distribution of an actual portfolio of insurance contracts for Monopoly, as that would be too complicated. General results - the concepts - must suffice