A 40-year-old man in the U.S. has a 0.248% risk of dying during the next year. An insurance company charges $250 per year for a life-insurance policy that pays a $100,000 death benefit. Complete the probability distribution table. Let a be the profit (which could be negative in the case of a loss). List the x values from smallest to largest. Remember to list the P(x) as a probability, not a percent. This problem is from the customer's point of view. P(x) What is the expected value for the person buying the insurance? Round your answer to the nearest cent. Be careful with negative signs. Expected Value: $ for the year
A 40-year-old man in the U.S. has a 0.248% risk of dying during the next year. An insurance company charges $250 per year for a life-insurance policy that pays a $100,000 death benefit. Complete the probability distribution table. Let a be the profit (which could be negative in the case of a loss). List the x values from smallest to largest. Remember to list the P(x) as a probability, not a percent. This problem is from the customer's point of view. P(x) What is the expected value for the person buying the insurance? Round your answer to the nearest cent. Be careful with negative signs. Expected Value: $ for the year
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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Transcribed Image Text:A 40-year-old man in the U.S. has a 0.248% risk of dying during the next year. An insurance
company charges $250 per year for a life-insurance policy that pays a $100,000 death benefit.
Complete the probability distribution table. Let a be the profit (which could be negative in the
case of a loss). List the x values from smallest to largest. Remember to list the P(x) as a
probability, not a percent. This problem is from the customer's point of view.
x
P(x)
What is the expected value for the person buying the insurance? Round your answer to the
nearest cent. Be careful with negative signs.
Expected Value: $
for the year
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