Diagrams of the normal distribution are almost mandatory
A health insurance company charges policyholders a $2450
annual premium for health insurance for hospitalization. The
company estimates that each time a patient is hospitalized costs
the company $3600. Furthermore, they have estimated that 85% of
patients will not be hospitalized, 10% will be hospitalized once a
year, and no one will be hospitalized more than twice.
(a) Find the insurance company’s expected profit per
policyholder.
(b) What is the expected profit...