Question: answer all questions with explanation Problem 2.3. (10 points) A health insurance company pays for any medical expenses whose cost exceeds $200. However, if a

answer all questions with explanation

Problem 2.3. (10 points) A health insurance company pays for any medical expenses whose cost exceeds $200. However, if a medical expense is In. than $200, the company doesn't pay anything. Assume that the cost of an expense is exponentially distributed with a mean of $600. (a) (5 points) Find the expected value of the payout by the insurance company. (b) (5 points) Find the standard deviation of the payout by the insurance company

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