Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed
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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Probability

Authors: Mark Daniel Ward, Ellen Gundlach

1st edition

716771098, 978-1319060893, 1319060897, 978-0716771098

More Books

Students also viewed these Mathematics questions

Question

Can you show and explain how to simplify: 2n^2 + 19n -10 / 9n + 90

Answered: 1 week ago