You are insuring against theft the new $300 CD-player you just installed in your car. Your insur- ance agent tells you that such a policy will cost you $12 per year, and the probability of theft is .2 in a given year. If you take this insurance what is your expected return per year?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Unfortunately, that is the whole question:
You are insuring against theft the new $300 CD-player you just installed in your car. Your insur- ance agent tells you that such a policy will cost you $12 per year, and the probability of theft is .2 in a given year.
If you take this insurance what is your expected return per year?
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