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docker41 [41]
3 years ago
15

In order to set premiums at profitable levels, insurance companies must estimate how much they will have to pay in claims on car

s of each make and model, based on the value of the car and how much damage it sustains in accidents. Let C be a random variable that represents the cost of claims on a randomly selected car of one model. The probability distribution of C is given below.
c $0 $1000 $4000 $10000
P(c) 0.6 0.05 0.13 0.22
Which of the following is the probability that the insurance company will have to pay a claim of at least $1000 for a randomly selected car of this model?
a. 0.05
b. 0.13.
c. 0.22.
d. 0.35.
e. 0.406.
f. none of above
Business
1 answer:
Ivan3 years ago
7 0

Answer:

0.4

None of the above

Explanation:

Given the distribution :

c ___$0 ___ $1000 ____ $4000 ___ $10000

P(c) _0.6 ____0.05 ______ 0.13 _____ 0.22

Probability of atleast $1000 :

P(x ≥ 1000) : P(x = 1000) + P(x = 4000) + P(x = 10000)

P(x ≥ 1000) = 0.05 + 0.13 + 0.22

P(x ≥ 1000) = 0.4

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Explanation:

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3 0
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Metz Industries stock is twice as risky as the market on average. Given an expected return on the market of A. ​7.35% B. ​16.50%
sergiy2304 [10]

Answer:

B. ​16.50%

Explanation:

We know,

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E(r) = 2.50% + 14%

E(r) = 16.5%

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