minitab required for two solutions in 6 hours,,,i attached answers already,what i need is translation to minitab
An insurance company wants to estimate the premium to be charged for a $200,000 homeowner's policy that covers fire, theft, vandalism, and natural calamities. Flood and earthquakes are not covered. The company has estimated from historical data that a total loss may happen with a probability of 0.0005, a 50% loss with a probability of 0.001, and a 25% loss with a probability of 0.01. Ignoring all other
Losses, what premium should the company charge to make an average net profit of 1.5% of the policy's face value?
SOLUTION
Let the premium to be charged be denoted by p. The probability distribution of X, the net amount retained by the company is given as follows:
Since the company wants to make an average net profit of 1.5% of the face value of the policy, we have:
E(X) = 3000, or
p(0.9885) + (pā200,000) (0.0005) + (p ā 100,000) (0.001) + (pā50,000) (0.01) = 3000 or p = $ 3700.