25. Life Insurance A life insurance company sells a $250,0001-year term life insurance policy to a 20-year-old female for$200. According to the National Vital Statistics Report, 58(21)the probability that the female survives the year is 0.999544Compute and interpret the expected value of this policy to theinsurance company26. Life Insurance A life insurance company sells a $250,000 1-yearterm life insurance policy to a 20-year-old male for $350.Accordingto the National Vital Statistics Report, 58(21), the probability thatthe male survives the year is 0.998734. Compute and interpret theexpected value of this policy to the insurance company.27. BlackJack BlackJack is a popular casino game in which aplayer is dealt two cards where the value of the card correspondsto the number on the card, face cards are worth ten, and aces areworth either one or eleven. The object is to get as close to 21 aspossible without going over and have cards whose value exceedsthat of the dealer. A blackjack is an ace and a ten in two cards. Itpays 1.5 times the bet. The dealer plays last and must draw a cardwith sixteen and hold with seventeen or more. The followingdistribution shows the winnings and probability for a $20 bet.In cases where the dealer and player have the same value, thereis a tie (called a "push"). Source: "Examining a Gambler's Claims:Probabilistic Fact-Checking and Don Johnson's Extraordinary WinningStreak" by W.J. Hurley, Jack Brimberg, and Richard Kohar. Chance Vol.271, 2014.WinningsProbability00.0982$300.0483$200.389275-$200.464225

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Asked Oct 3, 2019
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25. Life Insurance A life insurance company sells a $250,000
1-year term life insurance policy to a 20-year-old female for
$200. According to the National Vital Statistics Report, 58(21)
the probability that the female survives the year is 0.999544
Compute and interpret the expected value of this policy to the
insurance company
26. Life Insurance A life insurance company sells a $250,000 1-year
term life insurance policy to a 20-year-old male for $350.According
to the National Vital Statistics Report, 58(21), the probability that
the male survives the year is 0.998734. Compute and interpret the
expected value of this policy to the insurance company.
27. BlackJack BlackJack is a popular casino game in which a
player is dealt two cards where the value of the card corresponds
to the number on the card, face cards are worth ten, and aces are
worth either one or eleven. The object is to get as close to 21 as
possible without going over and have cards whose value exceeds
that of the dealer. A blackjack is an ace and a ten in two cards. It
pays 1.5 times the bet. The dealer plays last and must draw a card
with sixteen and hold with seventeen or more. The following
distribution shows the winnings and probability for a $20 bet.
In cases where the dealer and player have the same value, there
is a tie (called a "push"). Source: "Examining a Gambler's Claims:
Probabilistic Fact-Checking and Don Johnson's Extraordinary Winning
Streak" by W.J. Hurley, Jack Brimberg, and Richard Kohar. Chance Vol.
271, 2014.
Winnings
Probability
0
0.0982
$30
0.0483
$20
0.389275
-$20
0.464225
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25. Life Insurance A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old female for $200. According to the National Vital Statistics Report, 58(21) the probability that the female survives the year is 0.999544 Compute and interpret the expected value of this policy to the insurance company 26. Life Insurance A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old male for $350.According to the National Vital Statistics Report, 58(21), the probability that the male survives the year is 0.998734. Compute and interpret the expected value of this policy to the insurance company. 27. BlackJack BlackJack is a popular casino game in which a player is dealt two cards where the value of the card corresponds to the number on the card, face cards are worth ten, and aces are worth either one or eleven. The object is to get as close to 21 as possible without going over and have cards whose value exceeds that of the dealer. A blackjack is an ace and a ten in two cards. It pays 1.5 times the bet. The dealer plays last and must draw a card with sixteen and hold with seventeen or more. The following distribution shows the winnings and probability for a $20 bet. In cases where the dealer and player have the same value, there is a tie (called a "push"). Source: "Examining a Gambler's Claims: Probabilistic Fact-Checking and Don Johnson's Extraordinary Winning Streak" by W.J. Hurley, Jack Brimberg, and Richard Kohar. Chance Vol. 271, 2014. Winnings Probability 0 0.0982 $30 0.0483 $20 0.389275 -$20 0.464225

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Hello. Since you have posted multiple questions and not specified which question needs to be solved, we will solve the first question for you. If you want any other specific question to be solved then please resubmit only that question or specify the question number.

It is provided that the probability of a female survives a year is 0.999544. Therefore, the probability of not surviving is 1 – probability of surviving = 1 – 0.999544 = 0.000456.

Step 2

Consider the below table,

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Condition Probability (P) Value (x) x.P(x) 0.999544 Survive +$200 +199.9088 +$200 $250000 -113.9088 Not survive 0.000456 Total +86

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Step 3

The expected value of the polic...

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E(x) P(survive) survival value of x + P(not survive).not survival value of x (0.999544) (200) +(0.0004 56) (200 -250000) = 86

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