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Part 1

You plan to purchase dental insurance for your three remaining years in school. The insurance makes a one-time payment of $1100

in case of a major dental repair (such as an implant) or a one-time payment of

$120

in case of a minor repair (such as a cavity). If you don't need dental repair over the next 3 years, the insurance expires and you receive no payout. You estimate the chances of requiring a major repair over the next 3 years as

3%,

a minor repair as

62%

and no repair as

35%.

Complete parts A through d.

How much should the insurance company expect to pay for this policy? (Hint: Find the mean for this probability distribution.)

$ Enter your response here

(Type an integer or a decimal. Do not round.)