An insurance company knows that the average cost to build a home in a new California subdivision is ​$97,656 and that in any particular year there is a 1 in 51 chance of a wildfire destroying all the homes in the subdivision. Based on these data and assuming the insurance company wants a positive expected value when it sells​ policies, what is the minimum the company must charge for fire insurance policies in this​ subdivision? A) The company must charge ​$97,656 per year because the whole house will be destroyed in the event of a wildfire. B) The company must charge ​$1915 per year because the​ company's formula for yearly fees is the average cost divided by the chance of a wildfire. C) The company must charge ​$51 per year because there is a 1 in 51 chance of a wildfire each year. D) The company must charge ​$1915 per year because this is the expected value. E) The company must charge ​$51 per year because this is the expected value. F) The company must charge ​$97,656 per year because this is the expected value.

5. Assume the below life table was constructed from following individuals who were diagnosed with a slow-progressing form of prostate cancer and decided not to receive treatment of any form. Calculate the survival probability at year 2 using the Kaplan-Meir approach and interpret the results.   Time in Years Number at Risk, Nt Number of Deaths, Dt Number Censored, Ct Survival Probability 0 20     1 1 20 3     2 17   1   3 16 2 1     The probability of surviving 2 years after being diagnosed with a slow-progressing form of prostate cancer is .85. The probability of surviving 2 years after being diagnosed with a slow-progressing form of prostate cancer is .85 for the individuals being followed in this study. The probability of surviving 2 years after being diagnosed with a slow-progressing form of prostate cancer is .85 for individuals who decided against all forms of treatment. The probability of surviving 2 years after…

4. Assume the below life table was constructed from following individuals who were diagnosed with a slow-progressing form of prostate cancer and decided not to receive treatment of any form. Calculate the survival probability at year 1 using the Kaplan-Meir approach and interpret the results. Time in years Number at risk Nt  Number of deaths, Dt Number of censored Ct Survival Probability 0 20     1 1 20 3     2 17   1   3 16 2 1   A) The probability of surviving 1 year after being diagnosed with a slow-progressing form of prostate cancer is .85.B) The probability of surviving 1 year after being diagnosed with a slow-progressing form of prostate cancer is .85 for the individuals being followed in this study.C) The probability of surviving 1 year after being diagnosed with a slow-progressing form of prostate cancer is .85 for individuals who decided against all forms of treatment.D) The probability of surviving 1 year after being diagnosed with a slow-progressing form of…

8. The criteria for ideally insurable losses include all of the following EXCEPT: a. Accidental or unintentional Losses. C. A small carefully defined group of exposures. d. A large number of risk exposures. e. low probability of catastrophic loss.

An employer is ready to give her employees a raise andis considering two plans. Plan A is to give each personan $8.00 per day increase. Plan B is to give each person a 10% increase. Data on the current pay of these employ-ees shows that the median pay is $80 per day with an interquartile range of $10. Which of the following datasets will have the same median?A) The current pay and Plan A onlyB) The current pay and Plan B onlyC) Plan A and Plan B onlyD) The current pay, Plan A, and Plan BE) None; the current pay, Plan A, and Plan B will allhave different medians.

1. Power companies severely trim trees growing near their lines to avoid power failures due to falling limbs in storms. Applying a chemical to slow the growth of the trees is cheaper than trimming, but the chemical kills some of the trees. Suppose that one such chemical would kill 20% of sycamore trees. The power company tests the chemical on 250 sycamores. Consider this a SRS from the population of all sycamore trees. Calculate the probability that less than 24% of the tress in the sample are killed. (Hint: Shape, Center, Spread, Curve, Calculations, Conclusion....)