Mathematics, 26.03.2021 03:40 chickenwing32
A company offers a flood insurance policy that costs a homeowner $200 per year, and the company will make a payout of $100,000 to the homeowner if they have a flood in that year. The company set this price based on the probability of a flood in the area being 0.001. The table below displays the probability distribution of X=X= the company's profit from one of these policies.
No flood Flood
X=profit $200 -$99,800
P(X) 0.999 0.001
Given that μX=$100, calculate σX.
You may round your answer to the nearest dollar.
Answers: 1
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