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
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
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter9: Counting And Probability
Section9.3: Binomial Probability
Problem 33E: Sick leave probability that a given worker at Dyno Nutrition Will call in sick on a Monday is 004....
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Transcribed Image Text: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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