6) check picture
a) all three lines are parellel and have the same slope. the only difference is that they are translated on different points on the x-axis.
not sure about the rest sorry :(
I think that the answer is 45% because the sale started off with a 20% discount, but at the end they added another 25% to the sales. So since the sale already started off with 20%, you add 20%+25% which equals 45%.
The probability of it landing in the shaded area is 4/10, or 2/5 simplified, or 40%. Hope this helps! <3
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
