The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance is shown as follows: there is a 62% chance there won't be a claim ($0), a 11%...


The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance is shown as follows: there is a 62% chance there won't be a claim ($0), a 11% chance of a $1000 claim, a 8% chance of a $2700 claim, and otherwise, the claim will be $9000. What is the expected value of an insurance claim for this company? (please express your answer using 2 decimal places).



Jun 07, 2022
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