ONLY ANSER D., F., and G. IF YOU KNOW IT PLEASE Neighborhood insurance sells...
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ONLY ANSER D., F., and G. IF YOU KNOW IT PLEASE
Neighborhood insurance sells fire insurance policles to local homeowners. The premlum is $300, 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 $290,000. Required: a. Make a table of the two possible payouts on each policy with the probability of each. (Negative answers should be indicated with a minus sign.) b. Suppose you own the entire firm, and the company Issues only one policy. What are the expected value, varlance, and standard deviation of your profit? (Do not round intermediate calculations. Round your standard devlation to the nearest whole number.) c. Now suppose your company issues two policles. The risk of fire is independent across the two policles. Make a table of the three possible payouts along with thelr assoclated probabilltles. (Negative answers should be indicated with a minus sign. Round your "Probability" answers to 4 decimal places.) d. What are the expected value, varlance, and standard devlation of your profit? (Do not round intermediate calculations. Round your standard devation to the nearest whole number.) f. Continue to assume the company has issued two policles, but now assume you take on a partner, so that you each own one-half of the firm. Make a table of your share of the possible payouts the company may have to make on the two policles, along with thelr assoclated probabiltiles. (Negative answers should be indicated with a minus sign. Round your "Probability" answers to 4 decimal places.) g. What are the expected value and varlance of your profit
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