Exam P Practice Question 922
Study guide: Exam P-1
A homeowner's property is insured against hailstorm damage. Hailstorm damages have the following probability distribution:
| Damage | Probability |
|---|---|
| 20,000 (large) | 0.01 |
| 5,000 (medium) | 0.04 |
| 0 (none) | 0.95 |
Calculate the standard deviation of the hailstorm damage.
- A) 670
- B) 1,200
- C) 2,200
- D) 4,200
- E) 5,000
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