3. An insurance company sells an automobile policy with a deductible of one unit. Suppose that X has the pmf 0.9 x = 0 f (x) = { x = 1, 2, 3, 4, 5, 6 Determine c and the expected value of the amount...

3. An insurance company sells an automobile policy with a deductible of one unit. Suppose that<br>X has the pmf<br>0.9<br>x = 0<br>f (x) = {<br>x = 1, 2, 3, 4, 5, 6<br>Determine c and the expected value of the amount the insurance company must pay. Transla-<br>tion: The expected value of the amount the insurance company must pay is E [max (X – 1,0)].<br>

Extracted text: 3. An insurance company sells an automobile policy with a deductible of one unit. Suppose that X has the pmf 0.9 x = 0 f (x) = { x = 1, 2, 3, 4, 5, 6 Determine c and the expected value of the amount the insurance company must pay. Transla- tion: The expected value of the amount the insurance company must pay is E [max (X – 1,0)].

Jun 10, 2022

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3. An insurance company sells an automobile policy with a deductible of one unit. Suppose that X has the pmf 0.9 x = 0 f (x) = { x = 1, 2, 3, 4, 5, 6 Determine c and the expected value of the amount...

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