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Neighborhood Insurance sells fire Insurance policies to local homeowners. The premium is $110, the probability...

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Finance

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Neighborhood Insurance sells fire Insurance policies to local homeowners. The premium is $110, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $100,600. 2. Suppose you own the entire firm, and the company issues only one policy What are the expected payout, expected profit, variance and standard deviation of your scenario? (Enter all answers in dollars, rounded to 2 decimal places. Round Profit to the nearest whole dollar.) Answer is complete but not entirely correct. Puyouts on one policy Expected Payout 100 50 Pro 10.120,36000 Payout Variance 10.110.239 54 Payout Standard Deviation 3.179 66 5 5 c. Continue to assume the company has issued two policies, but now assume you take on a partner, so that you each own one half of the fim. Make a table of the possible payout and profit for the company, along with their associated variances and standard deviations (Enter all answers in dollars, rounded to 2 decimal places. Round Profit to the nearest whole dollar.) Answer is complete but not entirely correct. Payouts on a hall sponsorship of two policies Expected Payou 100 60 Prote S 9:40 Variance 5055 119 32 Standard Deviation 5 224836

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