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Aleksandr [31]
3 years ago
14

Avicenna, a major insurance company, offers five-year life insurance policies to -65 year-olds. If the holder of one of these po

licies dies before the age of 70 , the company must pay out $24,200 to the beneficiary of the policy. Executives at Avicenna are considering offering these policies for $573 each. Suppose that for each holder of a policy there is a 2% chance that they will die before the age of and 70 a 98% chance they will live to the age of 70.
Mathematics
1 answer:
Alecsey [184]3 years ago
5 0

Answer:

The question is about the least amount to charge each policyholder as premium

The least premium is $484

Step-by-step explanation:

The least amount of premium to charge for this policy is the sum of the expected values of outcome of both instances of policyholder dying before the age of 70 and living after the age of 70 years

expected value of dying before 70 years=payout*probability=$24,200*2%=$484

Expected of living after 70=payout*probability=$0*98%=$0

sum of expected values=$484+$0=$484

Note that payout is nil if policyholder lives beyond 70 years

The premium of $573 means that a profit of $89 is recorded

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6 0
3 years ago
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Help me i’m struggllinbggg with this
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The opposite angles of a parallelogram are congruent, so you have to set the values of each angle equal to each other and solve for x.

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Then, substitute the value of x back into the equations.
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8 0
2 years ago
To make the swim team Pedro must swim 400 m in less than seven minutes Pedro where the first 200 minutes in 2.86 minute he swam
MArishka [77]

Answer:

No he didnt make the team

Step-by-step explanation:

2.86 + 3.95= 6.81

so he swam 400 meters in 6min and 81 sec but theirs 60 sec in every min so realy he swam it in 7 min and 21 sec

5 0
3 years ago
Rodney bought a 50 pound bag of dog food. HIS dog ate 2/5 of the food in the first mon th and 2/10 of the food in the second mon
NeTakaya

Answer:

20 lbs

Step-by-step explanation:

2/5ths of the food would be 20 pounds because:

2/5 * 50 = 20

2/10ths of the food would be 10 pounds because:

2/10 * 50 = 10

If we add those two together, we would get the total amount that the dog ate, which would be 30 pounds. SInce the dog ate 30 pounds of food out of the 50 pounds, there would be 20 pounds left in the bag at the end of two months:

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4 0
3 years ago
At the ice cream parlor,sundaes cost $4.25 and waffle cones cost $3.75.You and your friends have $50 to spend.Your group buys 5
stich3 [128]

Answer:

You can buy 7 waffle cones.

Step-by-step explanation:

Let sundae = x

Let waffle cones = y

4.25x + 3.75y ≤ 50

4.25 (5) + 3.75y ≤ 50

21.25 + 3.75y ≤ 50

3.75y ≤ 28.75

y ≤ 7.666666666

* round to the nearest whole to get 7

6 0
3 years ago
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