Suppose a quarter of all the elephants in an African wildlife refuge have ear tags. If there are exactly 60 tagged elephants, wh
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Answer:
-3901 silver coins (a loss)
Step-by-step explanation:
Probability of surviving the quest = 85.4% (Gain of 5,533 silver coins.)
If the insured were to die, the insurance company would pay a death benefit(incur a loss) of 59,086 silver coins.
Therefore:
The probability of not surviving the quest = 100%-85.4% =14.6%
Therefore, the expected value of this insurance policy to the insurance company
The expected value of this insurance policy to BIC is -3901 silver coins