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FinnZ [79.3K]
3 years ago
8

Suppose a life insurance company sells a $240,000 one year term life insurance policy to a 25-year old female for $210. The prob

ability that the female survives the year is .999592. Compute the expected value of this policy to the insurance company. I thought I would start with x value of 1 - 12, but I'm lost on what my P(X=x) value will be. I can do these when I'm shown a chart, however I'm lost when asked to do them from a story problem... An example would be appreciated. Thank you in advance
Mathematics
1 answer:
skelet666 [1.2K]3 years ago
5 0

Answer:

$112.08 every year.

Step-by-step explanation:

Let's suppose a game in which we bet a certain amount of money ''A'' to a certain result and the probability of that result is ''p''. If the prize that we get is ''P'' therefore the expected value of gain is  :

E=p(P-A)+(1-p)(-A)=pP-A

Now,let's suppose that the female is ''betting on her death'' ⇒

P(she survives) = 0.999592

P(she doesn't survive) = 1 - 0.999592=4.08(10^{-4})

E(25-year old female) = 4.08(10^{-4}).(240000)-210=-112.08

The negative sign of E is important.It means that every year the 25-year old female will lose $112.08.

Therefore, the expected value of this policy to the insurance company is $112.08 every year.

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Use the standard norml distribution or the t-distribution to construct a 99% confidence interval for the population mean. Justif
dalvyx [7]

Answer:

E) we will use t- distribution because is un-known,n<30

the confidence interval is (0.0338,0.0392)

Step-by-step explanation:

<u>Step:-1</u>

Given sample size is n = 23<30 mortgage institutions

The mean interest rate 'x' = 0.0365

The standard deviation 'S' = 0.0046

the degree of freedom = n-1 = 23-1=22

99% of confidence intervals t_{0.01} =2.82  (from tabulated value).

The mean value = 0.0365

x±t_{0.01} \frac{S}{\sqrt{n-1} }

0.0365±2.82 \frac{0.0046}{\sqrt{23-1} }

0.0365±2.82 \frac{0.0046}{\sqrt{22} }

0.0365±2.82 \frac{0.0046}{4.690 }

using calculator

0.0365±0.00276

Confidence interval is

(0.0365-0.00276,0.0365+0.00276)

(0.0338,0.0392)

the mean value is lies between in this confidence interval

(0.0338,0.0392).

<u>Answer:-</u>

<u>using t- distribution because is unknown,n<30,and the interest rates are not normally distributed.</u>

4 0
2 years ago
How do you solve this? x - 2y = 4
valentina_108 [34]
If you want to solve for x, then
add 2y to both sides
x=2y+4
if want to solve for y
minus x both sides and divide by -2
x-2y=4
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5 0
2 years ago
For the function f defined below, what is the value of f(-1)? fx=x+3<br> -----<br> 2
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Answer:

6) C 1

7) A 3 (im not sure for this one because it's blurry)

8) C 1

Step-by-step explanation:

6) Replace the f(x) for -1 since we are told f(x) = -1. We then need to use the inverse operation to get x by itself.

- 1 =  \frac{x - 3}{ 2}

Since the opposite of division (which is indicated by the fraction line) is multiplication, we need to multiply the number on the left (-1) times 2.

- 2 = x - 3

For this step, the opposite of subtraction is addition so in this step, we must add 3 to -2.

1 = x

7) Can't explain cause I'm not sure if I'm right

8) To find out the slope of two coordinates we must use the following to determine it.

<h3>(IN THE PICTURE ATTACHED)</h3>

In this case, the y with the little two will be 4 and the y with the little one is 1. 4-1 is 3 and that's the y cooridnate sorted

For the x coordinate, the x with the little two is 1 and the x with the little one is -2. Thus, we must solve 1-(-2) which also equals 3.

<h3>Since the final coordinates are 3/3 and it simplifies, the final answer is 1.</h3>

6 0
2 years ago
Two-fifths of the 65 pies at the bakery are apple pies. How many apple pies does the bakery have?
olasank [31]
<span>twenty six apple pies 


</span>
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Step-by-step explanation:

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