Student Life Insurance Company wants to offer an insurance plan with a maximum claim amount of $5,000 for dorm students to cover theft of certain items. Past experience suggests that the probability of a maximum claim is .01. What premium should be charged if the company wants to make a pro t of $25 per policy? Assume any student who les a claim les for the maximum amount and there is no deductible. Show your calculations clearly.
Answer to relevant QuestionsA medical laboratory receives 40 blood specimens to check for HIV. Eight actually contain HIV. A worker is accidentally exposed to five specimens. (a) Use Excel to calculate the entire hypergeometric probability ...Find each geometric probability. a. P(X = 5) when π = .50 b. P(X = 3) when π = .25 c. P (X = 4) when π = .60 There are five accounting exams. Bob's typical score on each exam is a random variable with a mean of 80 and a standard deviation of 5. His final grade is based on the sum of his exam scores. (a) Find the mean and standard ...In a certain Kentucky Fried Chicken franchise, half of the customers typically request "crispy" instead of "original." (a) What is the probability that none of the next four customers will request "crispy"? (b) At least ...A small feeder airline knows that the probability is .10 that a reservation holder will not show up for its daily 7:15 a.m. fight into a hub airport. The fight carries 10 passengers. (a) If the fight is fully booked, what is ...
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