Defects A consumer organization inspecting new cars found that many had appearance defects (dents, scratches, paint chips, etc.). While none had more than three of these defects, 7% had exactly three,...

Defects A consumer organization inspecting new cars found that many had appearance defects (dents, scratches, paint chips, etc.). While none had more than three of these defects, 7% had exactly three, 11% exactly two, and 21% only one defect. Find the expected number of appearance defects in a new car and the standard deviation.

Insurance An insurance policy costs $100 and will pay policyholders $10,000 if they suffer a major injury (resulting in hospitalization) or $3000 if they suffer a minor injury (resulting in lost time from work). The company estimates that each year 1 in every 2000 policyholders may have a major injury, and 1 in 500 a minor injury only.

a) Create a probability model for the profit on a policy.

b) What’s the company’s expected profit on this policy?

 c) What’s the standard deviation?