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25. Life Insurance A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old female for $200. According to the National Vital Statistics Report, 58(21) the probability that the female survives the year is 0.999544 Compute and interpret the expected value of this policy to the insurance company 26. Life Insurance A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old male for $350.According to the National Vital Statistics Report, 58(21), the probability that the male survives the year is 0.998734. Compute and interpret the expected value of this policy to the insurance company. 27. BlackJack BlackJack is a popular casino game in which a player is dealt two cards where the value of the card corresponds to the number on the card, face cards are worth ten, and aces are worth either one or eleven. The object is to get as close to 21 as possible without going over and have cards whose value exceeds that of the dealer. A blackjack is an ace and a ten in two cards. It pays 1.5 times the bet. The dealer plays last and must draw a card with sixteen and hold with seventeen or more. The following distribution shows the winnings and probability for a $20 bet. In cases where the dealer and player have the same value, there is a tie (called a "push"). Source: "Examining a Gambler's Claims: Probabilistic Fact-Checking and Don Johnson's Extraordinary Winning Streak" by W.J. Hurley, Jack Brimberg, and Richard Kohar. Chance Vol. 271, 2014. Winnings Probability 0 0.0982 $30 0.0483 $20 0.389275 -$20 0.464225

25. Life Insurance A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old female for $200. According to the National Vital Statistics Report, 58(21) the probability that the female survives the year is 0.999544 Compute and interpret the expected value of this policy to the insurance company 26. Life Insurance A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old male for $350.According to the National Vital Statistics Report, 58(21), the probability that the male survives the year is 0.998734. Compute and interpret the expected value of this policy to the insurance company. 27. BlackJack BlackJack is a popular casino game in which a player is dealt two cards where the value of the card corresponds to the number on the card, face cards are worth ten, and aces are worth either one or eleven. The object is to get as close to 21 as possible without going over and have cards whose value exceeds that of the dealer. A blackjack is an ace and a ten in two cards. It pays 1.5 times the bet. The dealer plays last and must draw a card with sixteen and hold with seventeen or more. The following distribution shows the winnings and probability for a $20 bet. In cases where the dealer and player have the same value, there is a tie (called a "push"). Source: "Examining a Gambler's Claims: Probabilistic Fact-Checking and Don Johnson's Extraordinary Winning Streak" by W.J. Hurley, Jack Brimberg, and Richard Kohar. Chance Vol. 271, 2014. Winnings Probability 0 0.0982 $30 0.0483 $20 0.389275 -$20 0.464225

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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25. Life Insurance A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old female for $200. According to the National Vital Statistics Report, 58(21) the probability that the female survives the year is 0.999544 Compute and interpret the expected value of this policy to the insurance company 26. Life Insurance A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old male for $350.According to the National Vital Statistics Report, 58(21), the probability that the male survives the year is 0.998734. Compute and interpret the expected value of this policy to the insurance company. 27. BlackJack BlackJack is a popular casino game in which a player is dealt two cards where the value of the card corresponds to the number on the card, face cards are worth ten, and aces are worth either one or eleven. The object is to get as close to 21 as possible without going over and have cards whose value exceeds that of the dealer. A blackjack is an ace and a ten in two cards. It pays 1.5 times the bet. The dealer plays last and must draw a card with sixteen and hold with seventeen or more. The following distribution shows the winnings and probability for a $20 bet. In cases where the dealer and player have the same value, there is a tie (called a "push"). Source: "Examining a Gambler's Claims: Probabilistic Fact-Checking and Don Johnson's Extraordinary Winning Streak" by W.J. Hurley, Jack Brimberg, and Richard Kohar. Chance Vol. 271, 2014. Winnings Probability 0 0.0982 $30 0.0483 $20 0.389275 -$20 0.464225
Transcribed Image Text:25. Life Insurance A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old female for $200. According to the National Vital Statistics Report, 58(21) the probability that the female survives the year is 0.999544 Compute and interpret the expected value of this policy to the insurance company 26. Life Insurance A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old male for $350.According to the National Vital Statistics Report, 58(21), the probability that the male survives the year is 0.998734. Compute and interpret the expected value of this policy to the insurance company. 27. BlackJack BlackJack is a popular casino game in which a player is dealt two cards where the value of the card corresponds to the number on the card, face cards are worth ten, and aces are worth either one or eleven. The object is to get as close to 21 as possible without going over and have cards whose value exceeds that of the dealer. A blackjack is an ace and a ten in two cards. It pays 1.5 times the bet. The dealer plays last and must draw a card with sixteen and hold with seventeen or more. The following distribution shows the winnings and probability for a $20 bet. In cases where the dealer and player have the same value, there is a tie (called a "push"). Source: "Examining a Gambler's Claims: Probabilistic Fact-Checking and Don Johnson's Extraordinary Winning Streak" by W.J. Hurley, Jack Brimberg, and Richard Kohar. Chance Vol. 271, 2014. Winnings Probability 0 0.0982 $30 0.0483 $20 0.389275 -$20 0.464225
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