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.
Answer:
14%
Step-by-step explanation:
A. the answer is the first one
Answer:
9 = n
Step-by-step explanation:
12 = 6(n – 7)
Divide by 6 on both sides
12/6 = 6/6(n – 7)
2 = n-7
Add 7 to each side
2+7 = n-7+7
9 = n
Answer:
from the working in the photo
