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Hampton has purchased the insurance policy from an insurance company to cover the value of his house in case if it gets destroyed due to
Hampton has purchased the insurance policy from an insurance company to cover the value of his house in case if it gets destroyed due to a fire for the price of $2400 per year. Hampton's house is worth 5270000 and the probability that fire destroys the house during the length of the policy is estimated to be 0.5%. Let X be the insurance company's profit. Answer the following questions: 1. Create the probability distribution table for X : X outcome profit a: ,$ P(X : an] the house is destroyed a. E[X] = #X = dollars. (Round the answer to 1 decimal place.) b. SD[X] = 0'}; 2 dollars. {Round the answer to 1 decimal place.)
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