Claim Payment	Probability		This probability distribution describes the probabilities that
0	0.80		customers of the insurance company will receive various
1000	0.08		claim payment amounts in a given year.
2000	0.06
5000	0.05
25000	0.01

Refer to data above

What is the expected claim payment made per customer in a year?

What is the probability that a randomly selected customer receives exactly the expected claim payment you calculated in a?

What is the (sample) standard deviation of the claim payments made per customer in a year?

If the insurance company charges a $750 premium to each customer, each year, then what amount does the insurance company make/lose per customer, each year? In a sentence or two, explain why the customers might be willing to pay the $750 premium, given your calculations.

The critical value (or z value) for statistical significance at the 10% level is 1.645 (remember?!). Thus, Id like you to create a 90% confidence interval by taking:

Expected Claim Payment + 1.645(standard deviation of claim payment)

Now that I have the interval, Ill know that a randomly selected insurance customer will have a 90% chance of receiving claim payments within this confidence interval.

Do you agree with the above, italicized, analysis? In a sentence, explain why or why not.