You plan to purchase dental insurance for your three remaining years in school. The insurance makes a one-time payment of $1000 in case of a major dental repair (such as an implant) or a one-time payment of $140 in case of a minor repair (such as a cavity). If you don't need dental repair over the next 3 years, the insurance expires and you receive no payout. You estimate the chances of requiring a major repair over the next 3 years as 3%, a minor repair as 61% and no repair as 36%.
Complete parts a through c.
a. Why is X = payout of dental insurance a random variable?
A. The value of the payout depends on whether you will need major, minor, or no dental repair over the next 3 years.
B. The probability of needing major, minor, or no dental repair over the next 3 years is estimated.
C. The probability of needing major, minor, or no dental repair over the next 3 years varies.
D. The amount of the payout for major, minor, or no dental repair varies over the next 3 years.
b. Is X discrete or continuous? What are its possible values?
Is X discrete or continuous?
A. X is a continuous variable because its possible values form an interval.
B. X is a discrete variable because its possible values form an interval.
C. X is a continuous variable because the possible outcomes are a set of separate numbers.
D. X is a discrete variable because the possible outcomes are a set of separate numbers.
What are the possible values of X?
(Use a comma to separate answers as needed. Type integers or decimals. Do not round.)