5. A local bank reviewed its credit card policy with the intention of recalling some of its creditcards. It is known that 5% of cardholders will default, i.e., will miss three consecutive pay-ments. Management also knows that the chance of missing one monthly payment is 20% forcustomers who do not default. Of course, the probability of missing a monthly payment forthose who default is 1. Answer the following questions:(a)(b)What is the probability that a customer will default, if he missed one (or more)payments?What is the probability of a customer missing one (or more) monthly payment?Hint: Define first suitable events

Let M denote the event that a customer misses one (or more) monthly payments, and D denote the…

Answered: 5. A local bank reviewed its credit…

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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1. An investor is considering a $25,000 investment in a start-up company. She estimates that she has probability 0.05 of a $15,000loss, probability 0.15 of a $20,000 loss, probability 0.35 of a$35,000 profit, and probability 0.45 of breaking even (a profit of $0). What is the expected value of the profit? Select one: A. $16,000 B. $0 C. $19,750 D. $8500 note:-please send me answer in typed form strictly prohibited hand written solution
Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 80.6%. If BIC charges a premium of 8,499 silver coins and would pay a death benefit of 52,297 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC?
this a statistics question!!!! I am lookin for the monetary value!!!! For box a is $100,000 box b is -$55,000 box c is 0 and box d is 0 p1 = 75%p2 = 25% questions are 1. what EMV ( expected monetary value) amount do you come up with ? And what is your EMV decision ? In other words, do you build, or not?
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Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 88.9%. If BIC charges a premium of 8,240 silver coins and would pay a death benefit of 56,881 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative number. Phil Dunphy, a real estate agent, is considering whether he should list an unusual $303,402 house for sale. If he lists it, he will need to spend $3,848 in advertising, staging, and fresh cookies. The current owner has given Phil 6 months to sell the house. If he sells it, he will receive a commission of $23,557. If he is unable to sell the house, he will lose the listing and his expenses. Phil estimates the probability of selling this house in 6 months to be 73%. What is the expected…
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Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 92.2%. If BIC charges a premium of 7,941 silver coins and would pay a death benefit of 42,081 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative number.
Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 95.5%. If BIC charges a premium of 9,900 silver coins and would pay a death benefit of 49,518 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative number.

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