From a Portion of a Probability Distribution, You Read That

question 66

Multiple Choice

From a portion of a probability distribution, you read that P(demand = 0) is 0.05 and P(demand = 1) is 0.15. The cumulative probability for demand = 1 would be which of the following?

• A) 0.05
• B) 0.075
• C) 0.10
• D) 0.15
• E) 0.20

---

Definitions:

Catastrophic Health Insurance

A type of health insurance plan that provides coverage for emergencies and serious health conditions, often with higher deductibles and lower premiums.

Medical Savings Accounts

Savings accounts designed for individuals to save for medical expenses tax-free, often associated with high-deductible health plans.

Health Maintenance Organizations

A type of health insurance plan that restricts members to receiving care from health care professionals and hospitals within the organization's network, often focusing on prevention and wellness.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.