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
ohaa [14]
3 years ago
10

People in a certain group have a 0.60​% chance of dying this year. If a person in this group buys a life insurance policy for ​$

5500 that pays​ $1,000,000 to her family if she dies this year and​ $0 otherwise, what is the expected value of the​ policy?
Business
1 answer:
Nonamiya [84]3 years ago
5 0

Answer:

Explanation:

The expected value is calculated by using the probability of each event. If the chance of dying is 0.60% then the chance living is 99.40%. The expect value formula is:

∑[(xi)*P(xi)] (for all i events).

In this problem we have two events: live or die. If the person dies the family receives $1,000,000 (X1=$1,000,000) and if the person lives the family receives $0 (X2=$0). The probability of receiving $1,000,000 is 60% (P(x1)=0.006) and the probability of receiving $0 is 99.40% (P(x2)=0.994)

Using the formula the expected value of the policy (without the insurance cost):

$1,000,000* (0.006)+ $0*(0,994)= $6,000

If we subtract the insurance value:

$6,000-$5,500= $500

You might be interested in
Hyperion, inc. currently sells its latest high-speed color printer, the hyper 500, for $350. its cost of goods sold for the hype
Aleks04 [339]

Answer:

40%

Explanation:

To easy

4 0
3 years ago
Your friend, Alicia, is a graduating senior about to head to college in the fall. Alicia has a single checking account and is ea
kvv77 [185]

Answer:

It is good

Explanation:

Alicia would have an easier time splitting money and saving money towards different goals. Such as putting 40% of your paycheck into savings and splitting the 40% into 10% for each savings account.

6 0
2 years ago
If a stock split occurred, when calculating the current year's EPS, the shares are treated as issued:A. At the end of the year.B
son4ous [18]

Answer:

Correct answer is (C)

Explanation:

At the beginning of the year.

Earnings per share (EPS) is the portion of profit earned by the company that is allocated to each outstanding share of its common stock. It is determined by taking the difference between a company's net income and dividends paid for preferred stock and then divided by the average number of shares outstanding. So if stock split occurred when calculating the current year EPS, the shares are treated as issued at the beginning of the year.

7 0
2 years ago
Type your summary here. Use the Internet to find an article that presents a forecast of the economy's performance in the next th
larisa [96]

Explanation:

an entrepreneur is always creative have ideas make best decision thinks before decision

7 0
3 years ago
Bankruptcy is a process when a lender tries to obtain money from an individual's employer to pay an unpaid debt. true false user
konstantin123 [22]
The answer to the first one is False. The described process is called Garnishments. A periodic rate is <span>the interest rate you are charged for one payment period. </span>Fees associated with buying and finalizing your loan are known as closing costs
8 0
2 years ago
Other questions:
  • Did toilet paper cause a change in supply or quantity
    9·1 answer
  • The capital account balances for Donald &amp; Hanes LLP on January 1, 2011, were as follows:________.
    13·1 answer
  • FDR is credited with increasing federal government in an attempt to relieve the Great Depression by A) overriding Congress and s
    11·2 answers
  • In 2006, 61.2 million adults volunteered throughout the United States for a total of
    6·2 answers
  • True or false? The best way to choose the right social media tool is to think about your business goals, then narrow down your c
    13·1 answer
  • Suppose that, for every 1-percentage-point decline of the discount rate, commercial banks collectively borrow an additional $2 b
    10·1 answer
  • When managers at a large pharmaceutical company look towards the future and think about what could be, they are likely using whi
    9·1 answer
  • You are an employee of University Investment Consultants, Ltd. and have been given the following assignment. You are to present
    8·1 answer
  • Inbound logistics (receiving and storing materials for distribution to production), operations (transforming inputs into finishe
    6·1 answer
  • The following inventory transactions took place near December 31, 2018, the end of the Rasul Company's fiscal year-end:On Decemb
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!