What would be a fair premium for the insurance? We are assuming that the insurance company earns no profit
Q: A magazine subscription service is having a contest in which the prize is $40,000. If the company…
A: Solution-: A magazine subscription service is having a contest in which the prize is $40,000. If the…
Q: A magazine subscription service is having a contest in which the prize is $270,000. If the company…
A: Given that the winning amount= $270,000 There are total 3 million entries for the contest. So the…
Q: 2. You are considering purchasing an insurance policy for your office as per your business plan. The…
A: Cost of Policy = P 100,000 In case of minor accident, Expected loss = 1,000,000 *P(minor fire) =…
Q: Suppose you bet $8 on a horse at your favorite race track who's odds of winning are 3/8. A) what…
A: Part (A) Let A be the event represents the winning of horse. Given that, odds of winning the race is…
Q: Suppose that you and a friend are playing cards and decide to make a bet. If your friend draws three…
A: Given information- We have given a standard deck of 52 cards. My friend draws three hearts in…
Q: operator meets his production quota, what is the probability that he (or she) attended the program?…
A: here define events operator meet the production quota = M training attended by operator = T here…
Q: A game of chance is considered fair, or equitable, ifeach player’s expectation is equal to zero. If…
A: From provided information; Die is balanced and probability of occurrence of each face is equal which…
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A: The value corresponds to surviving the year is = charges incurred by the man for taking life…
Q: What is the fewest number of times you must roll a six-sided dice before you can be assured that n…
A: The Pegion Hole Principle: Suppose that and are natural numbers and that we are distributing…
Q: 3. A risk-averse individual is offered a choice between a gamble that pays P1000 with a probability…
A: Expected value is the measure that explain the average value. It is calculated by the combined value…
Q: If you toss a fair coin seven times, what is the probability of getting all tails?
A:
Q: Consider two types of home insurance: theft insurance and carthquake insurance. Each year there is a…
A: Given information: Each year there is a 1% chance that the home will be robbed and a 1% chance that…
Q: The paper says there is an 80% chance of rain today, so you plan indoor activities. Then it doesn't…
A: Given: The paper says there is an 80% chance of rain today, so you plan indoor activities and then…
Q: pany builds at Diablo, however, and an earthquake occurs at Diablo during the next five years,…
A:
Q: What is the probability that your best friend will order fries with her special?
A: Probability of an event occurring is defined as the ratio of the number of favorable outcomes to the…
Q: Chicken Little is risk-neutral, but is concerned about the sky falling. She believes that there is a…
A: For a discrete random variable, X, with probability distribution P(X) , the expected value of X can…
Q: What is the probability that the firm will have more than eight defaults in a given year? What is…
A: Solution: 57)
Q: Consider two types of home insurance: theft insurance and carthquake insurance. Each year there is a…
A: Given information: Each year there is a 1% chance that the home will be robbed and a 1% chance that…
Q: What is probability?
A: The chance of occurrence of an event is the probability of that event.
Q: How is probability interpreted?
A: The probability of an event E is denoted by P(E).
Q: What is the chance the person you just swiped right is divorced?
A: We have given that the data of a person’s life status like never married, married, widowed, divorced…
Q: You are playing a game where you draw a card from a standard deck, and you will win $17 if you draw…
A:
Q: In contract negotiations between a local government agenc and its workers, it is estimated that…
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Q: 3. A manufacturer says the probability of their product being defective is 19%. If your company buys…
A: From the given information we find the solution.
Q: 1. What is the probability of meeting a student who is full-time or a finance major? 2. Is this an…
A: The Business club at a local club is composed of 20 part-time accounting majors, 15 part-time…
Q: 1. Assume that the current price of Microsoft stock is $28 per share. What is the probability that…
A: The given current price of the stock is S=28 Let K=35 To calculate the probability of the price of…
Q: What are the three approaches to assigning probability? Provide some examples of how these would be…
A: The three approaches to assigning probabilities are: Classical approach, Relative frequency approach…
Q: d. What is the probability that two or more online retail orders will turn out to be fraudulent?
A: Let p = probability of being fraudulent. Given that p = 0.08 Let X denote the number of fraudulent…
Q: Suppose the probability of an IRs audit is 4.2 percent for U.S taxpayers who file form 1040 and who…
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Q: Would you pay $10 per throw of two dice if you were to receive a number of dollars equal to the…
A: Possible number of outcomes when rolling two dice are…
Q: If you charge $3 to play a game of chance and the expected value is - $2, then what is the fair…
A: According to the given information, it is required to find the fair price of the game.
Q: A poll taken in Massachusetts in October 2012 showed Obama leading Romney by 60% to 40% in the U.S.…
A: Given that I predicted a victory for Obama. This means the probability that I will win= 60%=0.60 So…
Q: The twins, Nikki and Sean want to open a small convenience store. They have to decide whether to…
A: Note: All payoffs are in $000. As we can see from the decision tree below, the best decision is to…
Q: In a proposed business venture, a company estimates that there is a 60% chance the company will make…
A: Introduction: Hey there! Thank you for the question. As you have posted multiple questions,…
Q: What is the probability that a student is not a Pinterest user?
A: Total Users=71+24+20+5=120 Now, total Pinterest Users=24+20=44 Then, Probability of Pinterest…
Q: Text:Avicenna, a major insurance company, offers five-year life insurance policies to 65-year-olds.…
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Q: Part C: At the Iron Bank, 62% of customers have checking accounts, 24% have savings accounts, and…
A:
Q: Holland America Cruise Lines has three luxury cruise ships that sail to Alaska during the summer…
A: Let A be the event that the dollar does not appreciate against European currencies Let B be the…
Q: What did the insurance company charge Charlie for this policy if the company expected to break even?
A: Here given Charlie buys a one-year term home insurance policy for $p, that will pay $200,000 in the…
Q: Luella has a bag with three Hershey Kisses, two Reese's Cups, five York Peppermint Patties, and a…
A: According to the given information, Number of Hershey kisses in the bag = 3 Number of Reese's Cups…
Q: If our goal was to play roulette so that we can "win it big". What does the expected value of a bet…
A: We all dream of winning big, becoming an instant millionaire; but how likely is that?
Q: Mr. Keller filled out a bracket for the NCAA National Tournament. Based on his knowledge of college…
A: It is given that the player guessing any one game correctly is 0.64. There are 32 games in the first…
Q: the sales manager knows that 18% of his clients do not pay their debts in full. He supposes that he…
A:
Q: When playing games of chance like roulette, people often say that a particular outcome is due,…
A: Given: In games like roulette, people often say that a particular outcome is "due" meaning that one…
Q: suppose it costs $14 to roll a pair of dice. You get paid two dollars times the sum of the numbers…
A: Given suppose it costs $14 to roll a pair of dice.
Q: Suppose it costs $29 to roll a pair of dice. You get paid 4 dollars times the sum of the numbers…
A: The sample space when two dice are rolled is given as follows:
Q: During spring, young moose, unfamiliar with roads and traffic, are wandering around at night in a…
A: Given data During spring young moose un familiar with roads and traffic are wandering around at…
Q: the sales manager knows that 10% of his clients do not pay their debts in full. He supposes that he…
A: We have to find out given probabiity that 14% or more will not be fulfilled in their…
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