Solutions Probability

An insurance company expects 10% of its policyholders to collect claims of $400 this year and the re

Question: An insurance company expects 10% of its policyholders to collect claims of $400 this year and the remaining 90% to collect no claims. The variable is the amount they will pay in claims per person.

a. Use this information to fill in the following table.

Possible Outcome in Words	Numerical Outcome: Amount Pay in Claims per Person	Probability
No claim paid	0	0.1
Claim is paid	400	0.9
Total		1.0