An Insurance Policy Costs $150 Per Year,and Will Pay Policyholders

Multiple Choice

An insurance policy costs $150 per year,and will pay policyholders $16,000 if they suffer a major injury (resulting in hospitalization) or $6000 if they suffer a minor injury (resulting in lost time from work) .The company estimates that each year 1 in every 2000 policyholders will have a major injury and 1 in every 400 a minor injury.What is the standard deviation of the company's profit on this policy?

A) $582.92
B) $466.34
C) $447.68
D) $498.98
E) $550.28