The equation of the graph show is
y = -2/3x - 2
Answer: D) The base is e^(-1)
We use the rule that x^(-k) = 1/(x^k). That allows us to say e^(-1) = 1/(e^1) = 1/e
The 1/e is the base of the exponential (1/e)^x
In general, the exponential b^x has base b.
The expected value for the person buying the insurance is -25.
<h3>How the expected value is calculated?</h3>
The expected value is the average gain or loss of an event if the event is repeated a number of times.
Expected value = ∑xP(x)
<h3>Calculation:</h3>
It is given that,
The probability of a 47-year-old woman passing away during the coming year is 0.179% = 0.00179
The death benefit = $100,000 - $204 = $99,796
The loss from living = -204
Then the expected value = 99796(0.00179) + (-204)(0.99821) = -25
Therefore, the expected value for the person buying the insurance is -25.
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Seven hundred and ten thousand two hundred
