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Insurance: An Insurance company sells a l-year term life Insurance policy to an 85-year-old woman. The woman pays a premlum of $1000. If she dies within 1 year, the company will pay $23,000 to her beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 85-year-old woman will be alive 1 year later is 0.9605. Let X be the profit made by the Insurance company. Part 1 of 2

Insurance: An Insurance company sells a l-year term life Insurance policy to an 85-year-old woman. The woman pays a premlum of $1000. If she dies within 1 year, the company will pay $23,000 to her beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 85-year-old woman will be alive 1 year later is 0.9605. Let X be the profit made by the Insurance company. Part 1 of 2

College Algebra
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter9: Counting And Probability
Section9.3: Binomial Probability
Problem 33E: Sick leave probability that a given worker at Dyno Nutrition Will call in sick on a Monday is 004....
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Find the expected value of the profit.
Insurance: An insurance company sells a 1-year term life Insurance policy to an 85-year-old woman. The woman pays a premlum of $1000. If she dies within 1 year, the company will pay $23,000 to her beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 85-year-old woman will be alive 1 year later is 0.9605. Let X be the profit made by the insurance company. Part 1 of 2
Transcribed Image Text:Insurance: An insurance company sells a 1-year term life Insurance policy to an 85-year-old woman. The woman pays a premlum of $1000. If she dies within 1 year, the company will pay $23,000 to her beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 85-year-old woman will be alive 1 year later is 0.9605. Let X be the profit made by the insurance company. Part 1 of 2
(b) Find the expected value of the profit. Expected value of the profit Is $
Transcribed Image Text:(b) Find the expected value of the profit. Expected value of the profit Is $
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