An injury insurance policy pays out 6000 if a person is


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?

Solution Preview :

Prepared by a verified Expert
Basic Statistics: An injury insurance policy pays out 6000 if a person is
Reference No:- TGS01177391

Now Priced at $25 (50% Discount)

Recommended (99%)

Rated (4.3/5)