Solution Found!

Statistics / Probability and Statistical Inference 9 / Chapter 3.4 / Problem 3.4-14

Probability and Statistical Inference | 9th Edition | ISBN: 9780321923271 | Authors: Robert V. Hogg, Elliot Tanis, Dale Zimmerman

Change Question

A customer buys a $1000 deductible policy on her $31,000 car. The probability of having

Chapter 3, Problem 3.4-14

(choose chapter or problem)

Get Unlimited Answers

QUESTION:

A customer buys a $1000 deductible policy on her $31,000 car. The probability of having an accident in which the loss is greater than $1000 is 0.03, and then that loss, as a fraction of the value of the car minus the deductible, has the pdf f(x) = 6(1 x)5, 0 < x < 1. (a) What is the probability that the insurance company must pay the customer more than $2000? (b) What does the company expect to pay?

Questions & Answers

QUESTION:

A customer buys a $1000 deductible policy on her $31,000 car. The probability of having an accident in which the loss is greater than $1000 is 0.03, and then that loss, as a fraction of the value of the car minus the deductible, has the pdf f(x) = 6(1 x)5, 0 < x < 1. (a) What is the probability that the insurance company must pay the customer more than $2000? (b) What does the company expect to pay?

ANSWER:

Step 1 of 3

Given:

(loss) has the pdf with

is the loss as the fraction of the value of the car minus the deductible, thus can take on values from 0 to

Study Tools You Might Need

Chapter: 9 Problem: 97E

Chemistry: A Molecular Approach 3
The cyanate ion (OCN-) and the fulminate ion (CNO-) share the same three atoms but have vastly different properties. The cyanate ion is stable, while the fulminate ion is unstable and forms explosive compounds. The resonance structures of the cyanate ion were explored in Example 9.8 . Draw Lewis stru

Chapter: 5 Problem: 1

Statistics Through Applications 2
An online poll In June 2008, Parade magazine posed the following question: Should drivers be banned from using all cell phones? Readers were encouraged to vote online at parade.com. Th e July 13, 2008, issue of Parade reported the results: 2407 (85%) said Yes and 410 (15%) said No. (a) What type of s

Chapter: 41 Problem: 6

Physics for Scientists and Engineers with Modern Physics 9
Two square wells have the same length. Well 1 has walls of finite height, and well 2 has walls of infinite height. Both wells contain identical quantum particles, one in each well. (i) Is the wavelength of the ground-state wave function (a) greater for well 1, (b) greater for well 2, or (c) equal for

Chapter: 8 Problem: 10

Elementary Statistics: A Step by Step Approach 8th ed. 8
Exam Grades A statistics professor is used to having a variance in his class grades of no more than 100. He feels that his current group of students is different, and so he examines a random sample of midterm grades (listed below.) At a _ 0.05, can it be concluded that the variance in grades exceeds

Chapter: 1 Problem: 17

Anatomy & Physiology 1
After you eat lunch, nerve cells in your stomach respond to the distension (the stimulus) resulting from the food. They relay this information to ________. a. a control center b. a set point c. effectors d. sensors

Chapter: 43 Problem: 3

Campbell Biology in Focus - Standalone book 1
What is the single greatest threat to biodiversity? a. overharvesting of commercially important species b. introduced species that compete with native species c. pollution of Earths air, water, and soil d. disruption of trophic relationships as more and more prey species become extinct e. habitat alt

Chapter: 18 Problem: 2

Stats Modeling the World 4
Margin of error A medical researcher estimates the percentage of children exposed to lead-based paint, adding that he believes his estimate has a margin of error of about 3%. Explain what the margin of error means.

Chapter: 46 Problem: 1

Biology: The Dynamic Science 5
Distinguish between the roles of the respiratory medium and the respiratory surface in respiratory systems.

Not The Solution You Need? Search for Your Answer Here:

×

Login

Login or Sign up for access to all of our study tools and educational content!

×

Register

Sign up for access to all content on our site!

Or login if you already have an account