An insurance policy will reimburse only one claim per year.
For a random policyholder, there is a 20% probability of no loss in the next year, in which case the claim amount is 0. If a loss occurs in the next year, the claim amount is normally distributed with mean 1000 and standard deviation 400.
Calculate the median claim amount in the next year for a random policyholder.
(A) 663
(B) 790
(C) 873
(D) 994
(E) 1000
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