Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 91.5%. If BIC charges a premium of 8,774 silver coins and would pay a death benefit of 22,566 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC?

Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 91.5%. If BIC charges a premium of 8,774 silver coins and would pay a death benefit of 22,566 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC?

Holt Mcdougal Larson Pre-algebra: Student Edition 2012

1st Edition

ISBN:9780547587776

Author:HOLT MCDOUGAL

Publisher:HOLT MCDOUGAL

Chapter11: Data Analysis And Probability

Section11.8: Probabilities Of Disjoint And Overlapping Events

Problem 2C

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