4. A grab bag contains 12 packages worth $.80 each, 15 packages worth $.40, and 25 packages worth $.30. Would it be worth playing if you had to pay $.50 to choose a package? 5. I ABC Insurance Specialty charges $150 for a policy and will pay out one claim for an accident. For a major accident, the policy will pay out $5000 and the policy will pay out $1000 for a minor accident. ABC Insurance Specialty has determined that the probability of a major accident is 0.005 and the probability of a minor accident is 0.08. What is the expected value of the policy from the perspective of the insurance company?

4. A grab bag contains 12 packages worth $.80 each, 15 packages worth $.40, and 25 packages worth $.30. Would it be worth playing if you had to pay $.50 to choose a package? 5. I ABC Insurance Specialty charges $150 for a policy and will pay out one claim for an accident. For a major accident, the policy will pay out $5000 and the policy will pay out $1000 for a minor accident. ABC Insurance Specialty has determined that the probability of a major accident is 0.005 and the probability of a minor accident is 0.08. What is the expected value of the policy from the perspective of the insurance company?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Question

I need help with these two questions please and thank you

4.
A grab bag contains 12 packages worth $.80 each, 15 packages worth $.40, and 25 packages
worth $.30. Would it be worth playing if you had to pay $.50 to choose a package?
5.
I
ABC Insurance Specialty charges $150 for a policy and will pay out one claim for an accident. For
a major accident, the policy will pay out $5000 and the policy will pay out $1000 for a minor
accident. ABC Insurance Specialty has determined that the probability of a major accident is
0.005 and the probability of a minor accident is 0.08. What is the expected value of the policy
from the perspective of the insurance company?

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