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Veighborhood Insurance sells fire insurance policies to local homeowners. The premium is $160, the probability of a fire is 0.1%, and in he event of
Veighborhood Insurance sells fire insurance policies to local homeowners. The premium is $160, the probability of a fire is 0.1%, and in he event of a fire, the insured damages (the payout on the policy) will be $150,000. f. Continue to assume the company has issued two policies, but now assume you take on a partner, so that you each own one-half of the firm. Make a table of your share of the possible payouts the company may have to make on the two policies, along with their associated probabilities. (Negative answers should be indicated with a minus sign. Round your "Probability" answers to 4 decimal places.) g. What are the expected value and variance of your profit
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