Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Report probabilities as decimal fractions with four digits after decimal point. Show your work in finding the answer. 8. (3 marks) Ms. Brown wants to
Report probabilities as decimal fractions with four digits after decimal point. Show your work in finding the answer. 8. (3 marks) Ms. Brown wants to insure her $400,000 diamonds for its total value by paying annual premium to the insurance company. In the case of the theft, Ms. Brown is supposed to get full price of her diamonds. The probability of the theft in the coming year is estimated to be 0.02. The insurance company wants the expected gain to be $ 1500. The yearly premium Ms. Brown is supposed to pay to the insurance company is equal to Assuming that the gain of the company is random variable denoted by X and the size of yearly premium is denoted by C, show your work in finding yearly premium
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started