Concept explainers
Hospitalization Insurance An insurance policy pays an individual $100 per day for up to 3 days of hospitalization and $25 per day for each day of hospitalization thereafter. The number of days of hospitalization, X, is a discrete random variable with probability function
Calculate the expected payment for hospitalization under this policy. Choose one of the following. Source: Society of Actuaries.
(a) $85 (b) $163 (c) $168 (d) $213 (e) $255
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Finite Mathematics (11th Edition)
- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage