An insurance policy costs $300, and will pay policyholders $10,000 if they suffer a major injury (resulting in hospitalization), or $4,000 if they suffer a minor injury (resulting in lost time from work). The company estimates that each year 1 in every 1,500 policyholders may have a major injury, and 1 in 1,000 a minor injury.

a) Create a probability model for the company's profit on this policy.

b) What's the company's expected profit on the policy?

c) What's the standard deviation?