generate a simulation of the automobile collision claim payments to 10 payments? b. how many claims are paid? c. how much is the total amount paid to the policyholders?
generate a simulation of the automobile collision claim payments to 10 payments? b. how many claims are paid? c. how much is the total amount paid to the policyholders?
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
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a. generate a simulation of the automobile collision claim payments to 10 payments?
b. how many claims are paid?
c. how much is the total amount paid to the policyholders?
Transcribed Image Text:The Statewide Auto Insurance Company developed the following probability distribution for
automobile collision claims paid during the past year:
Payment ($) Probability
0 0.83
500 0.06
1,000 0.05
2,000 0.02
5,000 0.02
8,000 0.01
10,000 0.01
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