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) $$\begin{array} { l | c | c | c } \text { Profit } & \$ 400 & - \$ 10,400 & - \$ 2,400 \\\hline \text { P(profit) } & 0.9987 & 0.0003 & 0.001\end{array}$$
B) $$\begin{array} { l | c | c | c } \text { Profit } & \$ 400 & \$ 10,000 & \$ 2,000 \\\hline \text { P(profit) } & 0.9987 & 0.0003 & 0.001\end{array}$$
C) $$\begin{array} { l | c | c | c } \text { Profit } & \$ 400 & \$ 10,400 & \$ 2,400 \\\hline \text { P(profit) } & 0.9987 & 0.0003 & 0.001\end{array}$$
D) $$\begin{array} { l | c | c | c } \text { Profit } & \$ 400 & \$ 9,600 & \$ 1,600 \\\hline \text { P(profit) } & 0.9987 & 0.0003 & 0.001\end{array}$$
E) $$\begin{array} { l | c | c | c } \text { Profit } & \$ 400 & - \$ 9,600 & - \$ 1,600 \\\hline \text { P(profit) } & 0.9987 & 0.0003 & 0.001\end{array}$$