1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
fenix001 [56]
2 years ago
13

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 $500 $1000 $2,000
P(C) 0.60 0.05 0.13 0.22
1. The expected value of C is:____.
a. $155
b. $595
c. $875
d. $645
e. $495
2. Which of the following is the best interpretation of the expected value E(C)?
a) If the company insures 10 cars of this model, they know they will incur 10xE(C) in costs.
b) The company must insure at least E(C) of these cars to make a profit.
c) If the company insures a large number of these cars, they can expect the variability in cost per car to average approximately E(C).
d) The maximum cost to the company for insuring this car model is E(C) per car.
e) If the company insures a large number of these cars, they can expect the average cost per car to be approximately E(C).
Mathematics
1 answer:
Inessa [10]2 years ago
7 0

Answer:

$595

e) If the company insures a large number of these cars, they can expect the average cost per car to be approximately E(C).

Step-by-step explanation:

Given the distribution :

C $0 $500 $1000 $2,000

P(C) 0.60 0.05 0.13 0.22

Expected probability : E(C)

Σ[C * P(C)] = (0*0.60) + (500*0.05) + (1000*0.13) + (2000*0.22) = $595

Since the expected value could be interpreted as the average value of a random variable over a large Number of experiment or trials

You might be interested in
I NEED THIS ANSWERED FAST WITH WORK PLEASE
Pavel [41]
1 thousand a month would be my guess
3 0
3 years ago
Can someone help me solve this?
julsineya [31]

Answer:

im sorry i cant see that

Step-by-step explanation:

8 0
3 years ago
how many four digit natural numbers can be formed using the digits 1,2,3,4 if repitition is not allowed
kirill115 [55]
Your answer is 16 because there’s only 4 numbers without repetition those numbers can be used 4 times so 4x4
5 0
2 years ago
Read 2 more answers
What is 0.25 divided by 1.075?
timurjin [86]
0.25 divided by 1.075 is 0.2325..
But I think 1.075 divided by 0.25 sounds more right, in case that is the problem then the answer is 4.3
4 0
3 years ago
if the price of an article is without tax is ₹ 800, and the price with tax is ₹ 860 the sales tax rate is_____________
vivado [14]

9514 1404 393

Answer:

  7.5%

Step-by-step explanation:

The tax as a proportion of the selling price is ...

  ₹(860 -800)/₹800 = 60/800 = 0.075 = 7.5%

7 0
2 years ago
Other questions:
  • Which expression shows the distance on the number line between −12 and −1 ?
    8·1 answer
  • What is the value of k?<br> k=<br> m
    10·2 answers
  • How can i find the slope of a line
    12·2 answers
  • Question number 1 pls
    13·2 answers
  • Lauren wants to keep her cell phone bill under $60 per month. Her current cell phone plan is $30 per month plus $0.05 per text.
    14·1 answer
  • Which of the following describes how to translate the graph y = lxl to obtain the graph of y = lx + 1l + 1?
    9·1 answer
  • <img src="https://tex.z-dn.net/?f=1%20%5Cdiv%201%20%2B%20a%20%20%7Bl%7D%20-%20%7Bm%7D%20%20%2B%201%20%5Cdiv%201%20%2B%20%20%7Bm%
    6·1 answer
  • Sally collects stamps. Of all her stamps,
    6·2 answers
  • Jorge deposited $5,000 into an account
    8·1 answer
  • At the beginning of a business day a banks vault held 575,900. by the end of the day 3.5 x 10 to the 3rd power was added. how mu
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!