An Insurance Policy Costs $150 Per Year,and Will Pay Policyholders

question 47

Multiple Choice

An insurance policy costs $150 per year,and will pay policyholders $16,000 if they suffer a major injury (resulting in hospitalization) or $6000 if they suffer a minor injury (resulting in lost time from work) .The company estimates that each year 1 in every 2000 policyholders will have a major injury and 1 in every 400 a minor injury.What is the standard deviation of the company's profit on this policy?

• A)$582.92
• B)$466.34
• C)$447.68
• D)$498.98
• E)$550.28

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Definitions:

Repression

A psychological defense mechanism where unwanted thoughts and memories are unconsciously blocked.

Erogenous Zones

Specific areas of the body that experience heightened sensitivity, which can lead to sexual arousal when stimulated.

Gender Identity

A person's deeply-felt internal experience of gender, which may or may not correspond with the sex assigned at birth.

Emotional Trauma

Psychological damage that occurs as a result of a distressing event, which overwhelms an individual's ability to cope, causing feelings of helplessness.