Multiple Choice
Let X be the amount in claims (in dollars) that a randomly chosen policyholder collects from an insurance company this year. The probability distribution function of X is given below.
-Let $D be the expected value of X. Which of the following is a correct interpretation of this value?
A) We would expect a randomly chosen policyholder to collect $D in claims this year.
B) The most likely value for the amount in claims is $D.
C) If we were to observe a large number of policyholders, the average amount claimed would be around $D.
D) On average, the amount claimed is about $D away from the mean.
Correct Answer:

Verified
Correct Answer:
Verified
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