Find the expected value to the company of a single policy if a person in this risk group has 90.5% chance of surviving one year

Q: A tree cutting business has an insurance policy to cover any damages caused during the tree cutting…

A: Given information: P(Damage) = 0.002  P(No Damage) =1- P(Damage) =1-0.002=0.998

Q: The expected value of each warranty sold is?

A: Here given A company estimates that 0.3% of their products will fail after the original warranty…

Q: The expected value of the amount of rain Saturday and Sunday are 2 inches and 3 inches,…

A: The given information is that the expected value of the amount of rain on Saturday is 2 inches and…

Q: A small organization is renting an outdoor arena for $1,000 and hosting a concert if it is it sunny…

A: Given outdoor arena for $1,000 expect to earn $6,000 Find if it rains the company will lose the $100…

Q: In a carnival game, the probability that you win$100 is 0.04, the probability that you win$10 is…

A: Let x - winning amount. x 100 10 -5 P(x) 0.04 0.3 0.66

Q: In a game of chance, you roll a standard die. If you roll an even number, you get half the value of…

A: From given data ,first we find probability distribution.

Q: An insurance company sells a $4,500, eight-year term life insurance policy to an individual for…

A:

Q: Suppose you pay ​$1.00to roll a fair die with the understanding that you will get back $3 for…

A: Considers a random variable X that defines the outcome of a fair die. The probability of each…

Q: What is the probability that, for the period in question, both the interest rate will decline and…

A: Given data:     The probability that production will increase if interest rates decline more than…

Q: A table at a fair is testing out a new game that works as follows: the player rolls two six-sided…

A: we have a new game in a fair of rolling 2 dices if player not getting 6 at first then he will not…

Q: A $500,000 term life insurance policy sell for a premium of $900.  If the probability of living…

A: The formula to find the expected value is given below:

Q: Suppose a life insurance company sells a $170,000 one-year term life insurance policy to a…

A: Given data,Probability that female survives is p=0.999567Premium for life insurance policy is…

Q: A 38-year-old woman purchases a $300,000 term life insurance policy for an annual payment of $490.…

A: Given Information: A 38-year-old woman purchases a $300,000 term life insurance policy for an annual…

Q: A lottery ticket has a grand prize of $45.9 million. The probability of winning the grand prize is…

A: Given  Grand prize = 45.9 million                      = 45.9 * 1000000                       =…

Q: 50 raffle tickets were sold for $5 apiece, with a chance to win a flat screen TV values at $700.…

A: The price can be won only one of the ticket out of 250 raffle tickets  So,  P(win) =1250P(Loss) =…

Q: A 30-year-old woman purchases a $100,000 term life insurance policy for an annual payment of $570.…

A: Given problem Given that   A 30-year-old woman purchases a $100,000 term life insurance policy for…

Q: According to survival probability tables, the probability that an 80 year old male living 1…

A: The probability that an 80 year old male living 1 additional year is 0.93, then the probability that…

Q: A local club plans to invest $10000to host a baseball game. They expect to sell tickets worth…

A: Given: Investment amount to host a baseball game, A=$10000 Expected cost to sell tickets, S=$19053…

Q: A man wishes to purchase a life insurance policy that will pay the beneficiary $15,000 in the event…

A: From the given informationBeneficiary amount for life insurance policy=$15000Probability that the…

Q: The expected value when you purchase a lottery ticket is −​$1.00 and the cost of the ticket is…

A: The expected value when you purchase a lottery ticket is −​$1.00 and the cost of the ticket is…

Q: Suppose a life insurance company sells a $210,000 one-year term life insurance policy to a…

A:

Q: A lottery game offers php. 2,000,000 to the grand prize winner, Php. 20 to 10,000 second prize…

A: We make a table for the winning amounts Winning amount (X) 2,000,000 20 4 Frequency 1 10000…

Q: In a raffle were 8000 tickets are sold for $2 each one prize of $4,700 will be awarded what is the…

A: Solution:

Q: Suppose a life insurance company sells a $120,000 one-year term life insurance policy to a…

A: Given P=0.999356 q=1-p     =1-0.999356     =0.000644

Q: According to the Social Security Administration, in 2015, the probability that a 51 year old male…

A: Given information Probability of the 51-year old surviving the year = 0.994476Cost incurred by this…

Q: urance company sells a $250,000 one-year life insurance policy to a 20-year-old male for $350.…

A: The probability that the male survives the year is 0.998611 The probability that the male did not…

Q: In finance the notion of expected value is used to analyze investments for which the investor has an…

A: Let X be a random variable denotes the amount of return for the investment. The probability mass…

Q: Suppose a life insurance company sells a $240,000 one-year term life insurance policy to a…

A:

Q: Suppose a life insurance company sells a $280,000 one-year term life insurance policy to a…

A:

Q: A game is said to be fair if the expected value (after considering the cost) is 0. This would mean…

A: 1. The probability of getting a red card is; P(Red)=2652⇒P(Red)=0.5 The probability of getting a…

Q: Sam is applying for a single year life insurance policy worth $58,550.00 If the actuarial tables…

A: It is given that, Sam is applying for a single year life insurance policy worth $58,550.00. If the…

Q: Suppose a life insurance company sells a $220,000 one-year term life insurance policy to a…

A: Cost incurred by company  if died = -220000+260 = -219740  Cost received by company if not died= 260…

Q: Suppose a life insurance company sells a $210,000 1-year term life insurance policy to a 20-year-old…

A: The probability that the person will die in next year is,    q = 1- probability survival    = 1-…

Q: Suppose a person is looking for a one-year life insurance policy. They decide on a $232994 policy.…

A: Probability of dying =0.0006Probability of not dying = 1-0.0006 =0.9994Net profit to company if…

Q: Within the nexXt two years. An inexpensive suppressor, which would provide protection for only one…

A: here given, The owner of a small firm has just purchased a personal computer, which she expects will…

Q: A 37-year-old woman purchases a $100,000 term life insurance policy for an annual payment of $480.…

A: Expected value:   In the long run the average value obtained by repetitions for the given experiment…

Q: Golfers arrive at the starter's booth of a public golf course at a rate of 8 per hour during the…

A: Given: Arrival rate λ = 8 per hour. t = 15 minutes Formula Used: P(n arrivals at time t) = λtne-λtn!

Q: The probability that a 29-year old female will die within 1-year is 0.000594. If an insurance…

A: Given data The probability that a 29 year old female will die with in 1 year is 0.000594.

Q: 28 The probability that a 50-year-old man will survive a fixed length of time is 0.995. An insurance…

A:

Q: Suppose a life insurance company sells a $230,000 1-year term life insurance policy to a 20-year-old…

A: The expectation is given as E(X)=∑ixipxi where X is the value of the random variable and p(x) is the…

Q: Suppose a life insurance company sells a $260,000 1-year term life insurance policy to a…

A: Given term life insurance policy to a 20​-year-old female for ​$170. the female survives the year is…

Q: Five hundred raffle tickets are sold for $1 each, for a first prize of $200 and two second prizes of…

A: Given : Five hundred raffle tickets are sold for $1 each, for a first prize of $200 and two second…

Q: A game is said to be fair if the expected value (after considering the cost) is 0. This would mean…

A: Given, No of red cards = 26 No of black cards = 26 Total no of cards = 52

Q: person is to receive the sum of the resulting amounts, then his expectation is

A: here given b0x contains total 10 balls 8 of ball marked with $2 2 of ball marked with $5 here 2…

Q: Suppose a life insurance company sells a ​$230,000 ​one-year term life insurance policy to a…

A: A life insurance company sells a $230,000 1-year term life insurance policy. The probability of…

Q: An insurance company sells a one year term life insurance policy to an 80 year old woman. The woman…

A: Given : Let X represent the  value of insurance company's profit X P(X) 1000 0.9581 -18500…

Q: Suppose you buy 1 ticket for $1 out of a lottery of 400 tickets with only 1 being the winning…

A:

Q: An insurance policy on an electrical device pays a benefit of $2400 if the device fails during the…

A: Given:  probability of failure during that year is 0.29           Probability of non-failure = 1 -…

Q: Phone calls arrive at the rate of 48 per hour at the reservation desk for Regional Airways. -…

A: a) In the reservation desk for Regional Airways, phone calls arrive at the rate of 48 per hour.

Q: Suppose a company charges an annual premium of $475 for a fire insurance policy. in case of a fire…

A:

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.