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Question 5b
Yes, because the probabilities sums to 1.
0.35
0.967
0.201
No, because the expected value is negative
The insurance company can expect to pay Ted $900.
$1.83
0.121
Question 6
Yes, because the probabilities sums to 1.
0.35
0.967
0.201
No, because the expected value is negative
The insurance company can expect to pay Ted $900.
$1.83
0.121
Question 1b
Yes, because the probabilities sums to 1.
0.35
0.967
0.201
No, because the expected value is negative
The insurance company can expect to pay Ted $900.
$1.83
0.121
Question 2
Yes, because the probabilities sums to 1.
0.35
0.967
0.201
No, because the expected value is negative
The insurance company can expect to pay Ted $900.
$1.83
0.121
Question 4b
Yes, because the probabilities sums to 1.
0.35
0.967
0.201
No, because the expected value is negative
The insurance company can expect to pay Ted $900.
$1.83
0.121
Question 5a
Yes, because the probabilities sums to 1.
0.35
0.967
0.201
No, because the expected value is negative
The insurance company can expect to pay Ted $900.
$1.83
0.121
Question 4a
Yes, because the probabilities sums to 1.
0.35
0.967
0.201
No, because the expected value is negative
The insurance company can expect to pay Ted $900.
$1.83
0.121
Question 5c
Yes, because the probabilities sums to 1.
0.35
0.967
0.201
No, because the expected value is negative
The insurance company can expect to pay Ted $900.
$1.83
0.121
Check it!