Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $330, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $320,000. a. Make a table of the two possible payouts on each policy with the probability of each. Answer is complete and correct. Outcome Outcome B: No Fire Fire! $ 330 (319,670) A: Payout b. Suppose you own the entire firm, and the company issues only one policy. What are the expected value, variance and standard deviation of your profit? Answer is complete and correct. Expected Variance Return $ 10 Standard Deviation 10114 102297600 c. Now suppose your company issues two policies. The risk of fire is independent across the two policies. Make a table of the three possible payouts along with their associated probabilities. (Round your "Probability" answers to 4 decimal places.) Answer is complete but not entirely correct. Outcome: Outcome: Outcome: No Fire One Fire Two Fires $ 660 $ (319,340) $ (639,340) 9 9.8000 % 0.0900 % 0.0000 % Payout Probability d. What are the expected value, variance and standard deviation of your profit? Answer is complete but not entirely correct. Expected Variance Standard Return Deviation $ (2.216) 92232206 9604