Suppose a person is looking for a one-year life insurance policy. They decide on a $232994 policy. This policy costs $291 per year. Suppose the probability the person dies in the year is 0.0006. Find the expected value of the policy for the insurance company. Give your answer as a decimal to at least two decimal places.

Q: The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For…

A: Given: Cause Number of deaths Passenger car occupant 13,100 Motorcycle driver 4,500 Tornado…

Q: Provide an appropriate response with details. A 28 year old man pays $206 for a one year life…

A: From the given information, the probability of he will live through the year is 0.9992. And a 28…

Q: A construction company is planning to bid on a building contract. The bid costs the company ​$1800.…

A: Given that the probability that the bid is accepted is= 25So the probability that the bid is not…

Q: b. If the 31-year-old male purchases the policy, what is his expected value? The expected value is $…

A:

Q: If records indicate that 2 houses out of 1000 are expected to be damaged by fire in any year, what…

A: Let us denote X= number of damaged houses Given that the probability of a damaged house= 2/1000 =…

Q: Assume that the monthly worldwide average number of airplane crashes of commercial airlines is 3.…

A: Solution

Q: The probability that a football game will go into overtime is 20%. What is the probability that…

A:

Q: A college graduate is searching for job. He/she already has an job offer that pays $60,000 per year.…

A:

Q: A skilled custom auto mechanic finds an old beat up Chevy Camaro in a junk yard, and pays $300 for…

A:

Q: A 40-year-old man in the U.S. has a 0.245% risk of dying during the next year . An insurance company…

A: In this case, The probability of dying=0.245%…

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: In a product liability​ case, a company can settle out of court for a loss of​ $350,000, or go to​…

A: Given Data: Loss if company settle out of court=350000 Loss if company takes case to the court and…

Q: An investor bought 1,500 shares of a stock for $6 a share. He estimates the probability that the…

A: An investor bought 1,500 share of a stock for $6 a share. The total value is 1500×6=9,000. The…

Q: An insurance policy sells for $300. Based on past data an average of 1 in 100 policyholders will…

A: The price of the insurance policy is: $300 Number of policies sold is: 10000 The total amount that…

Q: A company estimates that 0.1% of their products will fail after the original warranty period but…

A:

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

A:

Q: A 40-year-old man in the U.S. has a 0.241% risk of dying during the next year . An insurance company…

A: According to the given information, Risk of dying next year = 0.241% Charges of insurance company…

Q: An insurance company charges $1,142 per year to insure your car. They calculate that there is a 8%…

A: Expected value: The expected value of a random variable is the sum of the possible values that the…

Q: At age 50, Ann must choose between taking $20,000 at age 60 if she is alive then, or $32,000 at age…

A:

Q: A 40-year-old man in the U.S. has a 0.247% risk of dying during the next year . An insurance company…

A: From the question: The probability of getting  $100,000 death benefit is 0.247% = 0.00247  And the…

Q: Suppose a life insurance company sells a $170,000 1-year term life insurance policy to a 20-year-old…

A: From the provided information, The probability that the female survives = 0.999544 If female…

Q: An insurance company charges $983 per year to insure your car. They calculate that there is a 4%…

A: The insurance company charges $983 per year. The chance of getting accident each year is 4%. Hence…

Q: The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For…

A: Given, the number of deaths in the U.S in a year due to variety of causes.

Q: A 31-year-old woman purchases a $100,000 term life insurance policy for an annual payment of $410.…

A: Given, The probability that she will survive the year is 0.999056. The probability that she will not…

Q: Telephone calls arrive at an information desk at a rate of 35 per hour. What is the probability that…

A: From the given information, Telephone calls arrive at an information desk at a rate of 35 per hour.…

Q: Suppose a life insurance company sells a $200,000 1-year term life insurance policy to a 20-year-old…

A: Explanation: The probability that the female survive = 0.999544 If the female survive, then the…

Q: The table below gives the prizes and probabilities for winning on a $5 lotto scratcher. Find the…

A: Expected value = 2.016

Q: a. If a player bets $14 on the number 1, what is the player's expected value? The expected value is…

A:

Q: If records indicate that 14 houses out of 1000 are expected to be damaged by fire in any year, what…

A: Let us denote X= number of damaged houses Given that the probability of a damaged house= 14/1000 =…

Q: Richie's Insurance Company offers a $250,000 life insurance policy for a premium of $750 per year.…

A: Given Data: Premium=750 Life insurance cover=250000 P(life survives a year)=0.9977 P(life dies in a…

Q: In a product liability case, a company can settle out of court for a loss of $350,000, or go to…

A: Let X denotes the loss to the company. The probability of not guilty verdict is, Pnot guilty…

Q: The fine print on an instant lottery ticket claims that one in nine tickets win a prize. What is the…

A: As one in nine tickets wins a prize. The probability of winning the prize is, p=19 The number of…

Q: A lamp - exp(A = 1/4 per hour), hence, on average, 1 failure per 4 hours. What is ?the probability…

A: Given: λ=14

Q: In a raffle where 7,000 tickets are sold for $2 each one prize of $2,600 will be awarded what is the…

A:

Q: A 40-year-old man in the U.S. has a 0.241% risk of dying during the next year. An insurance company…

A:

Q: 1. What is the probability that Angelo will die in his 65th year? (Enter the decimal value.) 2. What…

A: Solution:

Q: An LG Dishwasher, which costs $1000, has a 16% chance of needing to be replaced in the first 2 years…

A: Given Information Probability of replacing in first 2 years  = 0.16 Cost of Dishwasher $1000…

Q: A construction company is planning to bid on a building contract. The bid costs the company $1300.…

A: We first make a table using the given information Gained amount (xi) 68000-1300=66700 -1300…

Q: Which one of the following probabilities is a "cumulative" probability?

A:

Q: An insurance policy that covers the damges on a U Haul truck for the entire rental is $100. If 1 in…

A: Given that: Average cost of repair of van is $1200. Number of damaged rental van is 1 in 200 or…

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: An insurance policy sells for $1000. Based on past data, an average of 1 in 100 policyholders will…

A: We will make a table using the given information Amount of claim 15000 30000 80000 Probability…

Q: An insurance policy sells for ​$1000. Based on past​ data, an average of 1 in 50 policyholders will…

A: an average of 1 in 50 policyholders will file a ​$10,000 ​claim, an average of 1 in 200…

Q: According to data, Metro Manila experiences major earthquake once every 4 months. What is the…

A: Farmula used P(E)+P(Ec)=1

Q: Suppose you called your local pharmacy to refill a prescription and are put on hold. Assume that the…

A:

Q: The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For…

A: Given that, Total number of deaths is 18209. Number of deaths as a passenger car occupant is 13100.…

Q: (a) What is the probability an individual large-cap domestic stock fund had a three-year return of…

A: Let , X→N(μ=14.4 , σ=4.4) Our aim is to find the following : a) P(X≥19) b) P(X≤10) c) P(X>x)=15%…

Q: In a proposed business venture, a businesswoman estimates there is a 60% chance she will make…

A: Given: There are 60% chances that she will make $52000 and 40% chances that she will lose $53000. To…

Q: An investor is considering a $30,000 investment in a start-up company. She estimates that she has a…

A: Given information- Let X denotes the profit. We have given that an investor is considering a $30,000…

Q: A lottery has a grand prize of $60,000, four runner-up prizes of $6,000 each, ten third-place prizes…

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.