19.1011121314A contractor is considering a sale that promises a profit of $26,000 with a probability of 0.6 or a loss (due to bad weather, strikes, and such) of $17,000 with aprobability of 0.4. What is the expected profit?dlo$22,400O $20,600O $8800Submit AssignmentContinue02022 McGraw Hill LLC. AllRights Reserved. Terms of Use | Privacy Center| AccessibilityMacBook AirDIIDD8088810F11F7F8F9escF3F4FSF6F2

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Answered: 3. A contractor is considering a sale…

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter8: Sequences, Series, And Probability

Section8.CR: Chapter Review

Problem 37E: Find the positive geometric mean between 4 and 64.

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Find the positive geometric mean between 4 and 64.
3. What would be the yearly premium for a $50,000 insurance policy against accidental household flood if the likelihood of an accidental household flood is estimated to be 0.005 and the company wishes to have a yearly expected gain of $2000? a. $2, 250. b. $2,550. c. $2,500. d. $2,520. 4. A manufacturer of electronic equipment buys spare parts for replacement and repairs in lots of one-thousand from the supplier. The manufacturer uses these spare parts to fix items under warrantee. Past historical records show that the probability of any one spare part being defective is unlikely and assumed to be one in one-thousand. In a shipment of one-thousand spare parts the probability of two defectives is a. 0.148. b. 0.184. c. 0.366. d. 0.386. 5. What is the probability of getting exactly three heads in five flips of a balance coin? a. 5/16 b. 3/16 c. 7/16 d. 9/16
Rainie owns a $200,000 house and has a 5% chance of experiencing a fire in any given year. Assume that only one fire per year can occur and that if a fire occurs, the house is completely destroyed. 1. Suppose that Rainie purchases a full insurance contract from Lemonade Insurance Company for an actuarially fair premium. This contract would pay all losses due to the fire. Assume that Rainie's contract is the only insurance contract Lemonade Insurance Company sold. What is the probability distribution of total losses for Lemonade Insurance Company if they sell a contract to Rainie? a. b. What is the actuarially fair premium [AFP] Lemonade Insurance Company will charge Rainie in the coming year? Show your work What is the amount of risk Lemonade Insurance Company faces if they have Rainie as their only customer? Show your work с.
A $150 eReader comes with a warranty from an electronics business that covers theft (T) and accidental damage (AD) . Due to the high expense of repairing an eReader, it is more cost-effective for the business to provide the customer a complete refund to go toward another one. There is a 5.1% possibility that an AD (Accidenal Claim) claim will be made in any given year. Assume there can only be one claim made (not one of each type).Customers who report an eReader as stolen will get a reimbursement for 80% of the item's full price. A Theft (T) claim is likely to be submitted 3.5% of the time in any given year.What is the anticipated financial benefit or loss for the firm on each contract if the warrantee costs $15.95 for a year?(NOTE: Keep in mind that regardless of whether a claim is made, the consumer will pay for the warranty upfront.)
N owns a Disability Income policy that will cover him to age 65, allhough the insurance company has the right to change the premium rate for the overall risk class to which N is assigned Which of he following types of renewability best describes this situation? A. Noncancellable B. Cancellable C. Guaranteed Renewable D. Optionally Renewable
2. The following situation arises in various situations such as when you are a homeowner. Suppose you face a random loss L in the coming year. You can purchase insurance against the loss L; the premium is double what the insurance company expects to pay out. (This price is in the ballpark of what reputable insurance companies charge. When you're offered an extended warranty or similar product, e.g., when purchasing an electronic device, the premium can be worse; e.g., 15 or 20 times your expected loss.) Let's assume that your loss L will be $1000 with probability 1/10, $100,000 with probability one in ten thousand, and $1,000,000 with probability one in a million; otherwise, your loss is 0. (a) If you purchase full coverage against the loss L, what is your premium? (b) Usually, the expensive part of insurance is insuring against small losses, and I've selected the p.m.f. of L to reflect this behavior. Assume that a loss of $5,000 would be painful to you and much more than $5,000 would…
There is a 0.9983 probability that a randomly selected 27-year-old male lives through the year. A life insurance company charges $198 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $110,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 27-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The value corresponding to surviving the year is $ The value corresponding to not surviving the year is $ (Type integers or decimals. Do not round.) b. If the 27-year-old male purchases the policy, what is his expected value? The expected value is $ (Round to the nearest cent as needed.) c. Can the insurance company expect to make a profit from many such policies? Why? because the insurance company expects to make an average profit of $ on every 27-year-old male it insures for 1 year. nearest cent as needed.) No, Yes,
þ. Let X be the damage incurred (in S) in a certain type of accident during a given year. Possible X values are 0, 2000, 4000, and 10000, with possibilities 0.8, 0.1, 0.08, and 0.02, respectively. A particular company offers a $600 deductible policy. What is the expected amount paid by this company on an accident claim?
1. Suppose an electronics store offers an extended warranty on a cell phone that covers screenrepair and camera repair and will cost $9.99 per month. Suppose there is a 14% chance ofneeding a screen repair in the next year and an 11% chance of needing a camera repair.Suppose a screen repair will cost the store $155 and a camera repair will cost the store $79.How much annual profit does the store expect for each warranty purchased? 2. Suppose there is a probability of 4/5 that you will get an A on any given exam. Create atable giving the probability distribution for the number of A’s that you could get if you taketwo exams.
There is a 0.9989 probability that a randomly selected 28-year-old male lives through the year. A life insurance company charges $141 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $90,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 28-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The value corresponding to surviving the year is $ The value corresponding to not surviving the year is $ (Type integers or decimals. Do not round.) b. If the 28-year-old male purchases the policy, what is his expected value? The expected va is (Round to the nearest cent as needed.) c. Can the insurance company expect to make a profit from many such policies? Why? because the insurance company expects to make an average profit of $ on every 28-year-old male insures for 1 year. (Round to the nearest cent as needed.)
There is a 0.9989 probability that a randomly selected 28-year-old male lives through the year. A life insurance company charges $151 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $120,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 28-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The value corresponding to surviving the year is $ The value corresponding to not surviving the year is $ (Type integers or decimals. Do not round.)
There is a 0.9987 probability that a randomly selected 30-year-old male lives through the year. A life insurance company charges $194 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $110,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 30-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The value corresponding to surviving the year is $ The value corresponding to not surviving the year is $ (Type integers or decimals. Do not round.) b. If the 30-year-old male purchases the policy, what is his expected value? The expected value is $. (Round to the nearest cent as needed.) c. Can the insurance company expect to make a profit from many such policies? Why? because the insurance company expects to make an average profit of $ on every 30-year-old male it insures for 1 year. (Round to the nearest cent as needed.)

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3. A contractor is considering a sale that promises a profit of $26,000 with a probability of 0.6 or a loss (due to bad weather, strikes, and such) of $17,000 with a alb probability of 0.4. What is the expected profit? $22,400 O $20,600 O $8800