Question
The probability distribution for damage claims paid by the newton automobile insurance company on collision insurance follows. payment ($) probability 0 0.85 500 0.04 1,000
The probability distribution for damage claims paid by the newton automobile insurance company on collision insurance follows. payment ($) probability
0 0.85
500 0.04
1,000 0.04
3,000 0.03
5,000 0.02
8,000 0.01
10,000 0.01
(a) use the expected collision payment to determine the collision insurance premium that would enable the company to break even. if required, round your answers to two decimal places. if your answer is zero, enter "0".
x f(x) xf(x)
0 0.085 0
500 0.04 20
1000 0.04 40
3000 0.03 90
5000 0.02 100
8000 0.01 80
10,000 0.01 100
Total ------------ 430
What is total f(x) ?
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