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An insurance company sells an automobile policy with a
Chapter 2, Problem 4E(choose chapter or problem)
An insurance company sells an automobile policy with a deductible of one unit. Let \(X\) be the amount of the loss having pmf
\(f(x)= \begin{cases}0.9, & x=0 \\ \frac{c}{x}, & x=1,2,3,4,5,6\end{cases}\)
where \(c\) is a constant. Determine \(c\) and the expected value of the amount the insurance company must pay.
Equation Transcription:
{
Text Transcription:
X
c
f(x)= { _c/x, x=1,2,3,4,5,6 ^0.9 x=0
Questions & Answers
QUESTION:
An insurance company sells an automobile policy with a deductible of one unit. Let \(X\) be the amount of the loss having pmf
\(f(x)= \begin{cases}0.9, & x=0 \\ \frac{c}{x}, & x=1,2,3,4,5,6\end{cases}\)
where \(c\) is a constant. Determine \(c\) and the expected value of the amount the insurance company must pay.
Equation Transcription:
{
Text Transcription:
X
c
f(x)= { _c/x, x=1,2,3,4,5,6 ^0.9 x=0
ANSWER:
Solution :
Step 1of 3:
An insurance sells an automobile policy with a deductible of one unit. If X be the amount of loss with pmf
We have to find C and the expected value of the amount that the insurance company must pay.