An insurance company charges Ted E. Bear $1400 per year for insurance on his home. The company has predicted that there is a 10% chance that Ted will make a claim on the policy of $5000. Create a probability distribution and determine what the insurance company can expect to make on this policy, on average?

$900  

Step-by-step explanation:

The given parameters are;

The amount Ted pays per year for insurance on his home = $1,400

The value of the insurance policy = $5000

The chance that Ted will make a claim on the policy = 10%

The expected value is given as follows

Incidence                     Probability(p)        Value(v)                                   v × p

A claim is made            0.1                  $5,000 - $1,400 = -$3,600     -$360

No claim                        0.9                 $1,400                                       $1260

Expected value is $1,260 - $360 = $900

The value the insurance company can be expected to make on average on the policy is $900    

i’m here for points.

(0,,,0)

step-by-step explanation:

the table of x and y values is shown in the attached pic(part of question)

we have to decide according that graph

given points are (0, 0) (–1, 0), (2, 0)

when we graph these points on graph they show an increasing line as shown in the attached pic