If the collision insurance claim is under $2,000, then the insurer would not pay anything, but if X > $2,000, then the insurer would pay X - $2,000. The new expected value is:

$E_2(X)=\frac{2,000-1,000}{10,000-1,000} *0+\frac{10,000-2,000}{10,000-1,000}*\frac{(2,000-2,000)+(10,000-2,000)}{2} \\E_2(X)=\frac{8}{9}*\frac{0+8,000}{2}\\ E_2(X)=\$3,555.56$

The percentage reduction on the claim payment is:

$P=(1-\frac{E_2(X)}{E(X)})*100 \\P=(1-\frac{3,555.56}{5,500})*100\\P=35.35\%$

There was a 35.35% reduction.

8 0

3 years ago

An employee at a homemade wooden toy store earned $860 over the past week. The employee needs to pay 14% for Federal Income Tax

Sindrei [870]

Answer:
$713.8

Explanation:
14%of 860 = 120.4

3% of 860 = 25.8

so, subtract the sum of the above 2 values from 860.

860 - (120.4+25.8) = 860-146.2 = 713.8

Hope this helps

4 0

3 years ago

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Which expression forms an equation with the given expression? 24 – 5 • 2 = ___________ A. (5 + 3) • 2 B. 2(6 + 1) C. 5 • 8 – 2 D

zhenek [66]

D. the rest is because of the characters rule

5 0

3 years ago

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