You purchase a brand new car for $17250 and insure it. The policy pays 61% of...

 

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You purchase a brand new car for $17250 and insure it. The policy pays 61% of the car's value if there is an issue with the engine or 24% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.008, and the probability there is an issue with the speaker system is 0.025. The premium for the policy is p. Let X be the insurance company's net gain from this policy. a. Create a probability distribution for X. Enter the possible values of X in ascending order from left to right. x -12540 P(X) 0.008 -3800 0.025 0.967 b. Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent. $ 187.68 Cookies help us deliver our services. By using our services, you agree to our use of cookies. OK Learn more You purchase a brand new car for $17250 and insure it. The policy pays 61% of the car's value if there is an issue with the engine or 24% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.008, and the probability there is an issue with the speaker system is 0.025. The premium for the policy is p. Let X be the insurance company's net gain from this policy. a. Create a probability distribution for X. Enter the possible values of X in ascending order from left to right. x -12540 P(X) 0.008 -3800 0.025 0.967 b. Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent. $ 187.68 Cookies help us deliver our services. By using our services, you agree to our use of cookies. OK Learn more