1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
P is the set of even numbers that are less than 11
ivanzaharov [21]

Is there a restriction that the set must be positive? or whole numbers? Because negative numbers can be even, which makes your set an infinite list of numbers.

Natural numbers: P = {2, 4, 6, 8, 10}

Whole numbers: P = {0, 2, 4, 6, 8, 10}

All real numbers: P = {2n ;n ≤ 5}

6 0
3 years ago
Evaluate the expression:
Simora [160]
The dot product will have you multiply the corresponding coordinates and add up the products

v dot w = (6*(-7)) + (7*5) + (-3*2)
v dot w = -42 + 35 - 6
v dot w = -7 - 6
v dot w = -13

Answer: -13
6 0
3 years ago
What is 41 3/4 simplified ?
solong [7]

Answer:

41 3/4 Is already is in simplified form

Step-by-step explanation:

3 0
3 years ago
Read 2 more answers
I’m haveing a hard time explaining why D is the right answer please help
Anon25 [30]
Because d actually collects data about what the people want.
3 0
3 years ago
What is the value of m in the ecuation 1/2m -3/4n = 16, when n =8 ?
soldi70 [24.7K]

Answer: m=44

Step-by-step explanation:

1/2m-3/4n = 16

1/2m-3/4(8) = 16

1/2m-24/4 = 16

1/2m-6 = 16

1/2m = 22

m=44

8 0
1 year ago
Other questions:
  • Monitors manufactured by TSI Electronics have life spans that have a normal distribution with a standard deviation of 1900 hours
    11·1 answer
  • Solve for x.<br><br> x2≥−4<br><br> A.) x≤ -8<br> B.) x≥ -2<br> C.)x≥-2<br> D.) x≥-9
    7·1 answer
  • Please help me factor this quartic polynomial!! and explain how pls! i tried to start it
    8·2 answers
  • How many points did the team score in the 11th game and why?
    6·1 answer
  • Micheal is taking a survey of students at his high school to find out how many hours they work per week. He surveys all of the s
    8·1 answer
  • Find the product of (x + 3)(x - 3)
    8·2 answers
  • Movies often use models to create special effects. In the movie Son of Godzilla, Godzilla appears to be 67 feet tall and was pla
    14·1 answer
  • What is the product of -3 and 5?
    13·2 answers
  • Lily invested $90,000 in an account paying an interest rate of 4.6% compounded
    8·1 answer
  • Please help! I'll give Brainleist if someone gets this right.
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!