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qaws [65]
3 years ago
11

A 37-year old individual purchases a life insurance policy of $95,000 for an annual payment of $250. based on a insurance report

, the probability that an individual is in a life threatening accident this year and survives is 0.999063. find the expected value of the policy for the insurance compan
Business
2 answers:
Sergeeva-Olga [200]3 years ago
8 0

Answer:Expected value = - 94661.45

Explanation:

The Policy pay out is $95000 ,if a client is in life threatening accident insurance company will loose $95000, if the client is not in a life threatening accident the insurance company will gain $250

Probability (Client is in a threatening accident) = 0.999063

Probability (not in a life threatening accident)= 1 - 0.999063 = 0000937

Insurance Premium = $250

Insurance Payout = $95000

expected value = 0.999063 x (- (95000 - 250)) + 0.000937 x (250)

expected value = 0.999063 x (-94750) + 0.000937 x (250)

expected value = - 94661.21925 + 0.23425 = - 94661.44675

expected value = - 94661.45

Archy [21]3 years ago
3 0

Answer:

$160.75

Explanation:

the expected value of the policy will = (premium x probability of surviving) - (policy benefits x probability of dying)

the probability of surviving = 0.999063

the probability of dying = 0.000937

policy's expected value = ($250 x 0.999063) - ($95,000 x 0.000937) = $249.77 - $89.02 = $160.75

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Serhud [2]

Answer:

include the cost of selling, delivering, and after-sales support for customers

Explanation:

The period cost is the cost which includes the major part of the selling and admin expenses plus it is also not capitalized and can be incurred according to the passage of time

So as per the given situation, the third option is correct as it includes the selling, delivering cost and after sales support

Therefore all the other options are wrong

6 0
3 years ago
The demand curve for a monopoly is horizontal because the demand is perfectly elastic. upward sloping. vertical because the dema
timama [110]

Answer:

Downward sloping

Explanation:

According to the law of demand, this law states that there is a inverse relationship between the price of a commodity and the quantity demanded for a commodity. This indicates that as the price of the commodity increases then as a result the quantity demanded for that commodity decreases and as the price of the commodity decreases then as a result the quantity demanded for that commodity increases.

Monopoly refers to the market conditions in which there is only a single firm operating in a whole market.

Hence, due to this inverse relationship between the price and the quantity demanded, the demand curve for a monopoly firm is downward sloping.

4 0
3 years ago
How many references does an employer usually want?
creativ13 [48]
I think at least 3-4





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6 0
3 years ago
Who is primarily responsible for determining the market value of the home you want to buy?
andreev551 [17]

Answer:

there is no "individual" person or a central authority that dictates the market value of a home, instead, it is influenced by several market conditions and factors such as,

External characteristics: home condition, lot size, popularity of an architectural style, water or sewage systems, sidewalk, paved road and so on.

Internal characteristics: size and number of rooms, construction quality, appliance condition, heating type, energy efficiency and so on.  

Supply and demand

Location

Explanation:

6 0
3 years ago
At the Penalty APR rate of 28.99% and a balance of about $1800, approximately how much interest would you owe in one month?
Gnom [1K]

Answer:

you owe $43.47 in one month

Explanation:

Daily Interest (for one month) = Balance × APR rate × [number of month / Total month in a year]

Daily Interest = $1800 × 28.99% × 1/12

                      = $1800 × 0.2899 × 0.0833

                      = $43.47

5 0
3 years ago
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