An injury insurance policy pays out $6000 if a person is seriously injured with permanent

profiletutor4helpyou
 (Not rated)
 (Not rated)
Chat

An injury insurance policy pays out $6000 if a person is seriously injured with permanent disability, $1000 if a person is seriously injured without permanent disability and $0 otherwise. The clients for the policy have 1 in 1000 (0.001) chance of being seriously injured with permanent disability, and 2 in 1000 (0.002) chance of being seriously injured without permanent disability.

What is the standard deviation of the amount of money paid by the insurance company?


37872

195

2848

37936 

  • 11 years ago
An injury insurance policy pays out $6000 if a person is seriously injured with permanent
NOT RATED

Purchase the answer to view it

blurred-text
  • attachment
    solution.docx