Answer:
-$500
Step-by-step explanation:
The expected value of a payment from the policy is ...
$500,000 × 0.002 = $1000
Since the business pays $1500 for the policy, the expected value to the business is ...
$1000 - 1500 = -$500 . . . per year
_____
Of course, the expected value to the insurance company is $500 per year.
_____
We have computed on the basis of 1 claim per year. If we consider the possibility of multiple independent claims, then the expected payment from the insurance goes up by a factor of 1/(1 -0.002) ≈ 1.002004008016.... This has the effect of increasing the expected value by $2.00 per year to -$498.
Answer:
the answer is 19.5
Step-by-step explanation:
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Answer:
Drink = 1.4
Hot dog = 1.75
x + y = 3.15
Step-by-step explanation:
Let drink = x ; hot dog = y
3x + 2y = 7.70 - - (1)
2x + y = 4.55 - - - (2)
From (2)
y = 4.55 - 2x - - - (3)
Put y = 4.55 - 2x in (1)
3x + 2(4.55 - 2x) = 7.70
3x + 9.1 - 4x = 7.70
-x = 7.7 - 9.1
-x = - 1.4
x = 1.4
Put x = 1.4 in (3)
y = 4.55 - 2(1.4)
y = 4.55 - 2.8
y = 1.75
Drink = 1.4
Hot dog = 1.75
x + y = 3.15
Answer:
2/5
Step-by-step explanation:
Jill wants to eat the same amount of pie every day so we need to divide the amount of pie by the amount of time. This gives us 4/10 which simplifies to 2/5. She should bring 2/5 a pie each day.
