Problem 5. Insurance policy An insurance company charges its policy holders an annual premium of $400 for the following types of accidents: 0 If the policy holder suffers a l"major accident" resulting in lengthy hospitalization, the company will pay out $40,000 to the injured policy holder. - If the policy holder suffers a "minor accident\" resulting in signicant absence from work, the company will pay out $5,000 to the injured policy holder. - If no injury is encountered (the most probable event), the company, of course, does not pay out anything to the policy holder