An insurance policy costs 100 and will pay policyholders, Ask an Expert

Statistics

An insurance policy costs $100 and will pay policyholders $10,000 if they suffer a major injury or $3000 if they suffer a minor injury. The company estimates that each year 1 in every 2000 policy holders may have a majory injury and 1 in 500 a minor injury. What is the company's expected profit on a policy?

View complete question

Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M91004220

Have any Question?Write your Review or question?

Related Questions in Statistics and Probability

Cardinal industries had the following operating results for

Cardinal Industries had the following operating results for 2018: Sales = $33,813; Cost of goods sold = $23,967; Depreciation expense = $5,947; Interest expense = $2,685; Dividends paid = $1,951. At the beginning of the ...

Assume the random variable x is normally distributed with

Assume the random variable x is normally distributed with mean mu = 86 and standard deviation sigma =4. Find the indicated probability. P(x

An investor considers investing 10000 in the stock market

An investor considers investing $10,000 in the stock market. He believes that the probability is 0.30 that the economy will improve, 0.40 that it will stay the same, and 0.30 that it will deteriorate. Further, if the eco ...

A recent study reported that the prevalence of

A recent study reported that the prevalence of hyperlipidemia is 30% in children 2 to 6 years of age. If 12 children are analyzed what is the probability that at least 3 are hyperlipidemic?

Can you look for multicollinearity between a categorical

Can you look for multicollinearity between a categorical independent variable and a continuous dependent variable or can you only look for multicollinearity between a continuous independent variable and a continuous depe ...

Briefly summarize the partnership business structure and

Briefly summarize the partnership business structure and the equity rights partners have, both in the context of managerial rights and ownership.

A chemical company is interviewing two people to become its

A chemical company is interviewing two people to become its risk manager. One has a background of management positions chemical refineries. The other has a background providing risk management consulting services to depa ...

A statistics student has collected data from a random

A statistics student has collected data from a random sample of 20 college students at his school. He collected data on many variables including GPA (grade point average) and how many hours per week they play video games ...

Consider the study of two insect populations at two exper-

Consider the study of two insect populations at two exper- imental stations. At station A, the egg hatch rate (computed from a set of 100 eggs at a time) is known to follow approximately a normal distribution with mean 6 ...

Candidate as pollster conducted a survey in which 460 out

Candidate A's pollster conducted a survey in which 460 out of 720 respondents indicated they would probably vote for Candidate A. Compute the confidence interval for the population. This is the question that I'm stuck on ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Statistics and Probability Expert