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Get Full Access to Probability And Statistics For Engineers And The Scientists - 9 Edition - Chapter 3 - Problem 36e
Get Full Access to Probability And Statistics For Engineers And The Scientists - 9 Edition - Chapter 3 - Problem 36e

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# Let X be the damage incurred (in $) in a certain type of ISBN: 9780321629111 32 ## Solution for problem 36E Chapter 3 Probability and Statistics for Engineers and the Scientists | 9th Edition • Textbook Solutions • 2901 Step-by-step solutions solved by professors and subject experts • Get 24/7 help from StudySoup virtual teaching assistants Probability and Statistics for Engineers and the Scientists | 9th Edition 4 5 1 342 Reviews 15 2 Problem 36E Let X be the damage incurred (in$) in a certain type of accident during a given year. Possible X values are 0, 1000, 5000, and 10000, with probabilities .8, .1, .08, and .02, respectively. A particular company offers a $500 deductible policy. If the company wishes its expected profit to be$100, what premium amount should it charge?

Step-by-Step Solution:

Answer Step 1 of 3 Let x=The damage incurred y=premium should charge g=The cost to insurance company Then g(x)=x-500 y(x)=E(g(x))+100 P(x)= probability assigned

Step 2 of 3

Step 3 of 3

##### ISBN: 9780321629111

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