An Insurance Company Estimates That It Should Make an Annual

Multiple Choice

An insurance company estimates that it should make an annual profit of $140 on each homeowner's policy written,with a standard deviation of $5500.If it writes 10,000 of these policies,what are the mean and standard deviation of the annual profit? Assume that policies are independent of each other.

A) μ = $14,000.00,σ = $550,000.00
B) μ = $1,400,000,σ = $550,000,000,000
C) μ = $1,400,000,σ = $550,000.00
D) μ = $1,400,000,σ = $55,000,000
E) μ = $14,000.00,σ = $55,000,000