Math

StatisticsQ&A Library#1 [S7] An insurance company charges $150 for a policy that will pay for at most one accident. For a major accident, the insurance company will pay $5000; for a minor accident, it will pay $1000. The $150 premium is not returned. The company estimates that the probability for a major accident is ia 0.005, and the probability ofa minor one is 0.08. s2) tol a) Fill in the items in the table below from the viewpoint of the insurance company. Note that for the insurance company, payouts are considered negative, and premium payments are positive. Show any computations that you might need to perform and explain your reasoning. # of accidents Value to insurance company probability bns bro to sg61e* bns davisn 90 ebtoo sidt 0 (d (alsvsi sonsbino too nigns sit ol slurmot srs diiod yniau eund sd aluoda noi 1N ud est alqm62 9m) 2n 90 sdy iew s 26 10T surd 92do ivel eonsbitn0o 9dtlo g0 6901 b) Using the information in the table above, compute the expected value of the insurance policy to the insurance company. Explain what your result means for the insurance company.Question

I need help with letter (a)

Tagged in

Find answers to questions asked by student like you

Show more Q&A

Q: 3. (a) Based on the random sample Y1 = 5.2, Y2 4.6, use the method of maximum likelihood to estimate...

A: Note:The pdf in Part (b) will be fY (y; θ1, θ2) = 1/(θ2 – θ1) if θ1 ≤ y ≤ θ2. We have solved using ...

Q: A history class has 75 members. If there is a 12% absentee rate per class meeting, find the mean, va...

A: It is given that n is 75 and p is 0.12.

Q: The National Association of Home Builders reported that 57 % of young people ages 18-24 wereliving w...

A: According to the provided information, 57% (p) of young people ages 18-24 were living with their par...

Q: Problem 3A and 3B

A: The adjusted relative risk by using CMH method.

Q: How to provide statistical interpretation of the coefficient, standard error, t-stat and p value of ...

A: Regression Coefficient:The regression coefficient corresponding to a given explanatory variable can...

Q: make up 2 data sets, each with 5 values, that have the same mean and median, but different standard ...

A: Let the two datasets be x and y

Q: A football coach randomly selected ten players and timed how long each player took to perform a cert...

A: Solution:The sample mean is obtained below:From the given information, number of observations is 10 ...

Q: Explain when you would use the z value or the t-value to calculate a confidence interval

A: Z value: The z value is used for finding the confidence intervals for single population proportion, ...

Q: Thompson and Thompson is a steel bolt manufacturing company. Their current steel bolts have a mean d...

A: Introduction:The sampling distribution of the sample mean, X̅ for a large sample (n ≥ 30) is approxi...