1. Math
  2. Statistics And Probability
  3. please explain why the answer is 1325...

Question: please explain why the answer is 1325...

Question details

A company insures 2 machines for maintainance. In a given year, each machine will require maintainance with probability 1/3, and if maintainance is required, the cost will be a uniform random variable between $0 and $4,000. If the insurance policy has an annual payment limit of $6,000 for both machines combined, what is the expected annual payment made by the insurer? A. 1315 B. 132-5 C. 1335 D. 1345 E. 1355please explain why the answer is 1325

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