What is the expected value for the insurance company?
E(x) = 0.9986*161 + 0.0014*(-99839) = $21.00
Step-by-step explanation: Ur welcome
There is a 0.9986 probability that a randomly selected 30 year old male lives through the year. A life insurance company charges $161 for insuring that the male lives through the year. If the male does not survive the year, the policy pays out $100,000 as a death benefit.
For this case what we can do is the following rule of three: 2/3 of a box ------> 1/2 minutes x of a box ---------> 1 minute Clearing x we have: x = (1 / (1/2)) * (2/3) Rewriting: x = 2 * (2/3) x = 4/3 Answer: the number of boxes per minute that the machine packs is: x = 4/3
