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Mathematics, 18.06.2020 00:57 OIFvet

You plan to purchase dental insurance for your three remaining years in school. The insurance makes a​ one-time payment of ​$1200 in case of a major dental repair​ (such as an​ implant) or a​ one-time payment of ​$160 in case of a minor repair​ (such as a​ cavity). If you​ don't need dental repair over the next 3​ years, the insurance expires and you receive no payout. You estimate the chances of requiring a major repair over the next 3 years as 6​%, a minor repair as 59​% and no repair as 35​%. Complete parts a through c. Required:
a. Why is X= payout of dental insurance a random variable?

A. The amount of the payout for major, mincr, or no dental repair varies over the next 3 years.
B. The probability of needing major, minor or no dental repair over the next 3 years is estimated.
C. The probability of needing major, minor, or no dental repair over the next 3 years varies.
D. The value of the payout depends on whether you will need major, minor, or no dental repair over the next 3 years.

b. Is X discrete or continuous? What are its possible values?
c. Give the probability distribution of X

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