Mathematics, 12.11.2020 03:20 rosie20052019
For next year, Jill has a health insurance policy with a deductible of $1000, which means that the insurance policy will pay for all medical expenses after Jill's expenses exceed $1000. So, if her medical expenses are $999, she pays it all out of (her own) pocket, and the policy pays nothing. If her medical expenses are $ 1007, the policy pays $7. Suppose that Jill's medical expenses are $1000 |Z|, where Z is a standard normal N( 0, 1 ) random variable. Let X be the amount of money paid by her insurance policy next year. Find E(X).
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