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The distribution for the number of claims (X) on a California home-owner's policy during one year is provided below.This information is obtained by a computer
The distribution for the number of claims (X) on a California home-owner's policy during one year is provided below.This information is obtained by a computer search of one company's entire database so it describes the entire population of California policy-holders. (Note: here X is a discrete random variable.)
Possible values of X
0
1
2
3
4
Probability
0.41
0.27
0.17
?
0.04
1) Find the missing probability P(X=3) (4 points)
2) Find the expected number of claims of California policy holders, i.e. E(X). (4 points)
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