An Insurance Policy Costs $400,and Will Pay Policyholders $10,000 If

Multiple Choice

An insurance policy costs $400,and will pay policyholders $10,000 if they suffer a major injury (resulting in hospitalization) ,or $2,000 if they suffer a minor injury (resulting in lost time from work) .The company estimates that each year 1 in every 3,000 policyholders may have a major injury,and 1 in 1,000 a minor injury.Create a probability model for the company's profit on this policy.

A)

B)

C)

D)

E)