Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Statistics and Probability Expert

The probability distribution for collision insurance claims paid through the T. J. Automobile Insurance Company is as follows:

Claim Probability
$0 0.90
$500 0.04
$1000 0.03
$2000 0.01
$3000 0.01
$4000 0.01

a) Employ the expected collision claim amount to find out the collision insurance premium that would let the company to break even on collision portion of policy.

b) The insurance company charges the annual rate of $250 for collision coverage. Find out the expected value of collision policy for policy holder?  Why does the policyholder buy the collision policy with this expected value?

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M921622

Have any Question? 


Related Questions in Statistics and Probability

Imagine that your town or city has increased its nighttime

Imagine that your town or city has increased its nighttime police patrols to reduce crime. Design two quasi-experiments to determine whether this intervention has been effective, one that uses some variation of a nonequi ...

In the following cross-lagged panel design does x appear to

In the following cross-lagged panel design, does X appear to cause Y, does Y appear to cause X, do both variables influence each other, or are X and Y unrelated?

1 in an experiment with two independent variables an anova

1. In an experiment with two independent variables, an ANOVA partitions the total variance into four components. What are they? 2. MS wg  appears in the denominator of every F-test. Why?

The middlecreek branch of the national bank of virginia has

The Middlecreek Branch of the national bank of Virginia has 8 real estate loans over $1,000,000. Of these 8 loans, 3 are "underwrite." A loan is underwater if the amount of the loan is greater than the value of the prope ...

Read the scenario related to identifying variables and

Read the scenario related to identifying variables and developing problem statements and then answer the three questions. Scenario: Retention of minority women in the workplace is becoming more and more difficult. Not fi ...

Gary is at the top of gails preference list and gail is at

Gary is at the top of Gail's preference list, and Gail is at the top of Gary's preference list. Prove that in every stable matching Gary and Gail are matched to each other.

Please no plagiarism1 compare and contrast the northern and

Please no plagiarism. 1. Compare and contrast the Northern and Southern economies and societies in the antebellum period. How did industrialization develop in the North, and plantation slavery in the South? How did the e ...

Onenbspstudy based on responses 1014nbsprandomly

One study, based on responses 1,014 randomly selected teenagers, concluded that 39% of teenagers cite grades as their greatest source of pressure. Use a 0.05 significance level to test the claim that fewer than half of a ...

Consider a sealed-bid first-price auction with two buyers

Consider a sealed-bid first-price auction with two buyers whose private values are independent; the private value of buyer 1 has uniform distribution over the interval [0, 3], and the private value of buyer 2 has uniform ...

Suppose that a population of size 3n is partitioned into

Suppose that a population of size 3n is partitioned into three subsets: n contractors, n carpenters, and n plumbers. Each person in this population has two preference relations: a preference relation over each one of the ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro