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Jim is a 60-year-old Anglo male in reasonably good health. He wants to take out a $50,000 term (i.e., straight death benefit) life insurance policy until he is 65. The policy will expire on his 65th birthday. The probability of death in a given year 60 62 0.01642 Jim is applying to Big Rock Insurance Company for his term insurance policy. X = age P(death at this age) 0.01105 61 0.01381 63 0.02014 64 0.02362 (a) What is the probability that Jim will die in his 60th year? (Enter a number. Enter your answer to five decimal places.) 0.01105 Using this probability and the $50,000 death benefit, what is the expected cost to Big Rock Insurance (in dollars)? (Enter a number. Round your answer to two decimal places.) $ (b) What is the expected cost to Big Rock Insurance for years 61, 62, 63, and 64 (in dollars)? (For each answer, enter a number. Round your answers to two decimal places.) year 61 $ year 62 $ year 63 $ year 64 $ number. Round your answer to two decimal places.) What would be the total expected cost to Big Rock Insurance over the years 60 through 64 (in dollars)? (Enter 24 (c) If Big Rock Insurance wants to make a profit of $700 above the expected total cost paid out for Jim's death, how much should it charge for the policy (in dollars)? (Enter a number. Round your answer to two decimal places.) (d) If Big Rock Insurance Company charges $5000 for the policy, how much profit does the company expect to make (in dollars)? (Enter a number. Round your answer to two decimal places.)

Jim is a 60-year-old Anglo male in reasonably good health. He wants to take out a $50,000 term (i.e., straight death benefit) life insurance policy until he is 65. The policy will expire on his 65th birthday. The probability of death in a given year 60 62 0.01642 Jim is applying to Big Rock Insurance Company for his term insurance policy. X = age P(death at this age) 0.01105 61 0.01381 63 0.02014 64 0.02362 (a) What is the probability that Jim will die in his 60th year? (Enter a number. Enter your answer to five decimal places.) 0.01105 Using this probability and the $50,000 death benefit, what is the expected cost to Big Rock Insurance (in dollars)? (Enter a number. Round your answer to two decimal places.) $ (b) What is the expected cost to Big Rock Insurance for years 61, 62, 63, and 64 (in dollars)? (For each answer, enter a number. Round your answers to two decimal places.) year 61 $ year 62 $ year 63 $ year 64 $ number. Round your answer to two decimal places.) What would be the total expected cost to Big Rock Insurance over the years 60 through 64 (in dollars)? (Enter 24 (c) If Big Rock Insurance wants to make a profit of $700 above the expected total cost paid out for Jim's death, how much should it charge for the policy (in dollars)? (Enter a number. Round your answer to two decimal places.) (d) If Big Rock Insurance Company charges $5000 for the policy, how much profit does the company expect to make (in dollars)? (Enter a number. Round your answer to two decimal places.)

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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Please answer all parts. If not possible please answer b, c and d. thank you.

Jim is a 60-year-old Anglo male in reasonably good health. He wants to take out a $50,000 term (i.e., straight death benefit) life insurance policy until he is 65. The policy will expire on his 65th birthday. The probability of death in a given year is provided. x = age P(death at this age) 60 0.01105 61 0.01381 62 0.01642 63 0.02014 64 0.02362 Jim is applying to Big Rock Insurance Company for his term insurance policy. (a) What is the probability that Jim will die in his 60th year? (Enter a number. Enter your answer to five decimal places.) 0.01105 Using this probability and the $50,000 death benefit, what is the expected cost to Big Rock Insurance (in dollars)? (Enter a number. Round your answer to two decimal places.) $| (b) What is the expected cost to Big Rock Insurance for years 61, 62, 63, and 64 (in dollars)? (For each answer, enter a number. Round your answers to two decimal places.) year 61 $ year 62 $ year 63 $ year 64 $ What would be the total expected cost to Big Rock Insurance over the years 60 through 64 (in dollars)? (Enter a number. Round your answer to two decimal places.) $ (c) If Big Rock Insurance wants to make a profit of $700 above the expected total cost paid out for Jim's death, how much should it charge for the policy (in dollars)? (Enter a number. Round your answer to two decimal places.) $ (d) If Big Rock Insurance Company charges $5000 for the policy, how much profit does the company expect to make (in dollars)? (Enter a number. Round your answer to two decimal places.) %24
Transcribed Image Text:Jim is a 60-year-old Anglo male in reasonably good health. He wants to take out a $50,000 term (i.e., straight death benefit) life insurance policy until he is 65. The policy will expire on his 65th birthday. The probability of death in a given year is provided. x = age P(death at this age) 60 0.01105 61 0.01381 62 0.01642 63 0.02014 64 0.02362 Jim is applying to Big Rock Insurance Company for his term insurance policy. (a) What is the probability that Jim will die in his 60th year? (Enter a number. Enter your answer to five decimal places.) 0.01105 Using this probability and the $50,000 death benefit, what is the expected cost to Big Rock Insurance (in dollars)? (Enter a number. Round your answer to two decimal places.) $| (b) What is the expected cost to Big Rock Insurance for years 61, 62, 63, and 64 (in dollars)? (For each answer, enter a number. Round your answers to two decimal places.) year 61 $ year 62 $ year 63 $ year 64 $ What would be the total expected cost to Big Rock Insurance over the years 60 through 64 (in dollars)? (Enter a number. Round your answer to two decimal places.) $ (c) If Big Rock Insurance wants to make a profit of $700 above the expected total cost paid out for Jim's death, how much should it charge for the policy (in dollars)? (Enter a number. Round your answer to two decimal places.) $ (d) If Big Rock Insurance Company charges $5000 for the policy, how much profit does the company expect to make (in dollars)? (Enter a number. Round your answer to two decimal places.) %24
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