Answer:
Avicenna can expect to lose money from offering these policies. In the long run, they should expect to lose ___33__ dollars on each policy sold
Step-by-step explanation:
Given :
The amount the company Avicenna must pay to the shareholder if the person die before 70 years = $ 26,500
The value of each policy = $497
It is given that there is a 2% chance that people will die before 70 years and 98% chance that people will live till the age 70.
The expected policy to be sold= policy nominal + chances of death
= 497 + [98% (no pay) + 2% (pay)]
= 497 + [98%(0) + 2%(-26500)]
(The negative sign shows that money goes out of the company)
= 497 - 2% (26500)
= 497 - 530
=33
Therefore the company loses 33 dollar on each policy sold in the long run.
The best and most correct answer among the choices provided by the question is the first choice. Move segment mus be done to draw the rectangle. I hope my answer has come to your help. God bless and have a nice day ahead!
Answer:
1 and 1/6 cups of flour
Step-by-step explanation:
We need the fractions to have common denominators so multiply 1/2 by 3 and 2/3 by 2 to get the common denominator of 6.
1/2 x 3/3 = 3/6
2/3 x 2/2 = 4/6
Add the two fractions
3/6 + 4/6 = 7/6 or 1 & 1/6