00:01
Hello, let's have a look on the question.
00:02
Let c be the premium for the policy.
00:06
This is premium for the policy.
00:12
Then we have administrative fees.
00:20
Administrative fees is $1 .20 and this is not part of profit.
00:29
So since we have c as premium, so profit will be equal to because premium we have c minus 20 for each policy.
00:38
This is the profit per policy.
00:43
Now let a be the event.
00:46
A is a historical event that happens to 9 out of every 100 owner.
00:52
9 out of every 100 owners of policy.
01:02
Now we need to find a probability of a which is equal to 9 divided by 100.
01:08
So this will be equal to 0 .09.
01:11
And the probability of a complement will be equal to 1 minus 0 .0 .0.
01:15
0 .09 that is equal to 0 .9 .1.
01:22
Now let y be the random variable.
01:25
Y be the random variable...