Insurance: An insurance company sells a l-year term life insurance policy to an 84-year-old man. The man pays a premium of $1600. If he dies within 1 year, the company will pay $33,000 to his beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 84-year-old man will be alive 1 year later is 0.9537. Let X be the profit made by the insurance company. Part: 0/ 2 Part 1 of 2 (a) Find the probability distribution. The probability distribution is 1600 P (x)
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- The probability that the next President will be a Democrat is 0.5, and the probability that the next President will be a woman is 0.3. The probability the next President will be a woman and a Democrat is 0.1. What is the probability the next President will be a Democrat or a woman?A company invests on selling computer units worth Php 32,000.00. The probability of maintaining this price throughout the year is 65% while that of less or more than 10% expected are 15% and 20%, (a) what is the probability that the selling price for that year is more than the expected price?Early in August an undergraduate college discovers that it can accommodate a few extra students. Enrolling those additional students would provide a substantial increase in revenue without increasing the operating costs of the college; that is, no new classes would have to be added. From past experience the college knows that the frequency of enrollment given admission for all students is 40%.a. What is the probability that at most 6 students will enroll if the college offers admission to 10 more students?b. What is the probability that more than 12 will actually enroll if admission is offered to 20 students?c. If the frequency of enrollment given admission for all students was 70%, what is the probability that at least 12 out of 15 students will actually enroll?
- Industry standards suggest that 12 percent of new vehicles require warranty service within the first year. University Toyota in Morgantown, WV sold 10 Toyotas yesterday. What is the probability that exactly one of these vehicles will require warranty service?Applied Machines produces large test equipment for integrated circuits. The machines are made to order, so the production rate varies from month to month. Before shipping, each machine is subject to extensive testing. Based on the tests the machine is either passed or sent back for rework. During the past 20 months the firm has had to rework the following numbers of machines: (given) Consider the example of Applied Machines presented above. Based on the estimate of the probability that a machine is sent back for rework computed from the 20 months of data, determine the following:a. If the company produces 35 machines in one particular month, how many, on average, require rework?b. Out of 100 machines produced, what is the probability that more than 20 percent of them require rework? (Use the normal approximation to the binomial for your calculations).You work at a mechanic shop. 40% of cars that come in have a flat tire. If there are 50 cars in the shop, what is the probability that more than 30 have a flat tire? Round to three decimal points.
- A local university has a student population that is 57% male. 64% of the students are undergraduates; 40% are both male and undergraduates. What is the probability that a randomly selected student is either male or an undergraduate?Your employer, an insurance company, would like to offer theft insurance for renters. The policy would pay the full replacement value of any items that were stolen from the apartment. Some apartments have security alarms installed. Such systems detect a break-in and ring an alarm within the apartment. The insurance company estimates that the probability of a theft in a year is .05 if there is no security system and .01 if there is a security system (there cannot be more than one theft in any year). An apartment with a security system costs the renter an additional $50 per year. Assume that: the dollar loss from a theft is $10,000, the insurance company is risk neutral, and the renter would be willing to pay more than the expected loss to insure against the loss of theft. What is the insurance company's break-even price for a one-year theft insurance policy for an apartment without a security system? Does a renter have an incentive to pay for a security system if he…Your employer, an insurance company, would like to offer theft insurance for renters. The policy would pay the full replacement value of any items that were stolen from the apartment. Some apartments have security alarms installed. Such systems detect a break-in and ring an alarm within the apartment. The insurance company estimates that the probability of a theft in a year is .05 if there is no security system and .01 if there is a security system (there cannot be more than one theft in any year). An apartment with a security system costs the renter an additional $50 per year. Assume that: the dollar loss from a theft is $10,000, the insurance company is risk neutral, and the renter would be willing to pay more than the expected loss to insure against the loss of theft. What is the insurance company's break-even price for a one-year theft insurance policy for an apartment without a security system? Does a renter have an incentive to pay for a security system if he…
- The mean cost of domestic airfares in the United States rose to an all-time high of $395 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $115. Use Table 1 in Appendix B. a. What is the probability that a domestic airfare is $540 or more (to 4 decimals)? b. What is the probability that a domestic airfare is $240 or less (to 4 decimals)? c. What if the probability that a domestic airfare is between $300 and $490 (to 4 decimals)? d. What is the cost for the 5% highest domestic airfares? (rounded to nearest dollar)Find the probability that there are three H when a fair coin is flipped four times. ___________% (Round the answer to 2 decimal points.)A class consists of 17 women and 65 men. If a student is randomly selected, what is the probability that the student is a woman?