Ask question

Ask question

All categories

2 years ago

13

An insurance company sells a one-year term life insurance policy to an 80-year-old woman. The woman pays a premium of $1000. If

she dies within one year, the company will pay $18,500 to her beneficiary. According to the company's statistics department, the probability that an 80-year-old woman will be alive one year later is 0.9581. Find the expected value of the insurance company's profit.

1 answer:

Gekata [30.6K]2 years ago

7 0

Answer:

The profit of the company will be $224.85

Step-by-step explanation:

Let the equation of profit be termed as E(x)

we are given

amount of purchasing the policy (let a)= $1000

probability that women will live for at least 1 year (let b) = 0.9581

amount lost by insurance company if the women dies (let c) = 18,500-1000 = 17,500

the probability woman dies within one year (let d) = 1-0.9581=0.0419

the equation will be

E(x) of profit= a*b - c*d = 1000*0.9581 - 17500*0.0419

= 958.1 - 733.25

= 224.85

You might be interested in

Find the value of B - A if the graph of Ax + By = 3 passes through the point (-7, 2), and is parallel to the graph x + 3y = -5.

Elena-2011 [213]

Answer:

$B - A = -6$

Step-by-step explanation:

Given

Point: (-7,2)

x + 3y = -5

Required

Find B- - A in Ax + By = 3

To start with; we need to calculate the slope of x + 3y = -5

$x + 3y = -5$

Subtract x from both sides

$x - x + 3y = -5 - x$

$3y = -5 - x$

Divide both sides by 3

$\frac{3y}{3} = -\frac{5}{3} - \frac{x}{3}$

$y = -\frac{5}{3} - \frac{x}{3}$

The slope of the line is the coefficient of x

Slope = $- \frac{1}{3}$

The question says line Ax + By = 3 is parallel to line x + 3y = -5; This means that they have the same slope of $- \frac{1}{3}$

Having calculated the slope, next is to calculate the equation of the line using the following formula;

$m = \frac{y - y_1}{x - x_1}$

Where m is the slope; m = $- \frac{1}{3}$ ; $(x_1, y_1) = (-7,2)$

Substitute these values in the formula above; the formula becomes

$-\frac{1}{3} = \frac{y - 2}{x - -7}$

$-\frac{1}{3} = \frac{y - 2}{x +7}$

Cross Multiply

$-1(x+7) = 3(y-2)$

Open brackets

$-x - 7 = 3y - 6$

Add x to both sides

$x - x - 7 = 3y - 6 + x$

$-7 = 3y - 6 +x$

Add 6 to both sides

$-7 + 6 = 3y -6 + 6 + x$

$-1 = 3y + x$

Multipby both sides by -3

$-3(-1) = -3(3y + x)$

$3 = -9y - 3x$

$-9y - 3x = 3$

$-3x - 9y = 3$

Comparing the above to Ax + By = 3

$Ax = -3x\\A = -3$

$By = -9y\\B = -9$

$B - A = -9 - (-3)$

$B - A = -9 + 3$

$B - A = -6$

3 0

2 years ago

Can someone please explain this to me please? Thank you : )

Ber [7]

Answer:

7/25

Step-by-step explanation:

if 7% are defective and they order 25% of their lightbulbs from Baker that will be your answer.

6 0

3 years ago

Here’s the answer you need to know

vovikov84 [41]

Thank you sooo much Maddi441

8 0

2 years ago

I need help answering all the questions plz

Natali [406]

The width is basically the diameter, and all you have to do is divide by 2 to get the radius.B is the name for base. I think the formula for a triangle is 1/2 bh. and for the circle c=pieD i hope that helped!

4 0

2 years ago

1)Russell from Up has 400 balloons. The balloons are red, yellow, blue and purple. Forty percent of the balloons are red, 5% are

Nastasia [14]

Answer:

Blue Ballon = 16

Yellow Ballon = 23

Green Ballon = 26

Red Ballon = 32

Total puffs = 1000

23y + 16(2y) + 32y + 26(y/2) = 1000

23y + 32y + 32y + 13y = 1000

100y = 1000

y = 1000/10

y = 10

Therefore, russell

filled 10 yellow balloons.

6 0

1 year ago