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?

Answer rating: 100% (QA)

Heres how to calculate the standard deviation of the amount of money paid by the insurance company I... View the full answer