An Insurance Company Estimates That It Should Make an Annual

Multiple Choice

An insurance company estimates that it should make an annual profit of $150 on each homeowner's policy written,with a standard deviation of $6000.If it writes 7 of these policies,what are the mean and standard deviation of the annual profit? Assume that policies are independent of each other.

A) μ = $396.86,σ = $42,000
B) μ = $1050,σ = $294,000
C) μ = $1050,σ = $42,000
D) μ = $1050,σ = $15,874.51
E) μ = $396.86,σ = $15,874.51