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 88.5%. If BIC charges a premium of 9,970 silver coins and would pay a death benefit of 78,065 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative mumber.

Question
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 88.5%. If BIC charges a premium of 9,970 silver coins and would pay a death
benefit of 78,065 silver coins if the insured were to die, what is the expected value of this
insurance policy to BIC?
Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter
your answer as a negative mumber.

Image Transcription

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 88.5%. If BIC charges a premium of 9,970 silver coins and would pay a death benefit of 78,065 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative mumber.

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