Insurance: An insurance company sells a 1-year term life insurance policy to an 80-year-old man. The man pays a premium of $1200. If he dies within 1 year, the company will pay $21,000 to his beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 80-year-old man will be alive 1 year later is 0.9437. Let X be the profit made by the insurance company. Part 1 of 2 (a) Find the probability distribution. The probability distribution is - 19800 1200 P(x) || 0.0563 | 0.9437 Alternate Answer: - 19,800 1200 P(x) 0.0563 0.9437 Part: 1/ 2 Part 2 of 2 (b) Find the expected value of the profit. Expected value of the profit is S

Insurance: An insurance company sells a 1-year term life insurance policy to an 80-year-old man. The man pays a premium of $1200. If he dies within 1 year, the company will pay $21,000 to his beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 80-year-old man will be alive 1 year later is 0.9437. Let X be the profit made by the insurance company. Part 1 of 2 (a) Find the probability distribution. The probability distribution is - 19800 1200 P(x) || 0.0563 | 0.9437 Alternate Answer: - 19,800 1200 P(x) 0.0563 0.9437 Part: 1/ 2 Part 2 of 2 (b) Find the expected value of the profit. Expected value of the profit is S

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter9: Counting And Probability

Section9.2: Probability

Problem 48E: Quality Control To control the quality of their product, the Bright-Light Company inspects three...

See similar textbooks