A hurricane bond pays the holder a face amount, say $1 million, if a hurricane causes major damage in a certain country. Suppose that the chance for such a storm is 4% per year. (a) If a financial firm sells these bonds for $62,000 what is the chance that the firm loses money if it only sells one of these? (b) If the firm sells 1,000 of these policies, each for $62,000, what is the probability that it loses money? (c) How does the difference between parts a and b compare to the situation of a life insurance company that writes coverage to numerous patients that live or die independently of one another? (a) If a financial firm sells these bonds for $62,000, the probability that the firm loses money if it only sells one of these is integer or a decimal.) (Type an

Q: In roulettem, if a player uses the doubling strategy starting with a $10 bet and is betting on red…

A: Given that, Odds are one-one

Q: Problem 1: Suppose that 15% of nonsmokers have Type 2 diabetes, whereas 45% of smokers have Type 2…

A: 1) According to the given information,15% of nonsmokers have Type 2 diabetes. That is, P(Type 2 |…

Q: A lottery has a grand prize of $1 million, 4 runner up prizes of $50,000 each, 14 3rd place prizes…

A: Given data: The grand prize given is E1=$1 million=$1,000,000. The prize money won by 4 runners up…

Q: A lottery has a grand prize of $1,000,000, 4 runner-up prizes of $50,000 each, 14 third-place prizes…

A: Given: P(winning $1000000) = 1/13000000P(winning $50000) = 4/13000000P(winning $5000) =…

Q: The test statistic of z=1.46 is obtained when testing the claim that p> 0.5. a. Identify the…

A: From the provided information, The test statistic (z) = 1.46 The claim is p > 0.5.

Q: [Questien A road between Castle Rock (Westerlands) and King's Landing (Stormlands), will have a most…

A: Construct the probability distribution for the initial cost of construction: Initial cost of…

Q: Problem 18.13 In a promotion, a popcorn company inserts a coupon for a free Red Box movie in 10% of…

A: Given information Probability that a coupon company inserts a free red box movie p = 0.1 Sample size…

Q: A bank is considering extending credit to a new customer and is interested in the probability that…

A: Given: Let O denotes who has overdrawn, D denotes default  P(O) = 0.30 P(D  |O) = 0.05 P(D | O') =…

Q: Two risky gambles were proposed at the beginning of chapter 14:   Game 1:   Win $30 with…

A: The two games are:   Game 1:   Win $30 with a probability of 0.5                  Lose $1 with a…

Q: Suppose someone is given the option of having either a guaranteed $20 a 21 % chance at $9, otherwise…

A: To find the expected value of Option 2, we will calculate the weighted average of the possible…

Q: If a default occurs, all losses between 20% and 50% of the principal are equally likely. If the loan…

A: d option i very much correctoption that is 3.5 million....

Q: Question 3. A shipment of assembly parts from a vendor offering inexpensive parts is used in a…

A: 5 - defective 7 - working (good) ____________________ 12 - total parts

Q: Jim likes to day-trade on the Internet. On a good day, he averages a $1400 gain. On a bad day, he…

A: On a good day, Jim averages a $1400 gain. On a bad day, Jim averages a $700 loss.Percentage of time…

Q: If you randomly select a letter from the phrase "Brandon loves to eat at Red Robin," what is the…

A: We have given that the phrase  "Brandon loves to eat at Red Robin," We have to find probability that…

Q: What is the probability that the business makes a profit in exactly two of its first three years?

A: Here given, the business makes a profit with probability 0.6 in the first year. For each year…

Q: The value corresponding to surviving the year is $ The value corresponding to not surviving the year…

A:

Q: snip

A: In statistics, the sample size is always denoted by 'n'. The sample is a part of the population.…

Q: Joe Dalton desperately wants to raise his bankroll of $600 to $1,000 in order to pay his debts…

A:

Q: fund manager has twenty analysts working for her. Each analyst recommends a stock to the manager.…

A:

Q: An oil-drilling company knows that it costs $25,000 to sink a test well. If oil is hit, the income…

A: From the given information, The probability of hitting the oil is 140 and the income for the oil hit…

Q: Problem 3. A new couple, known to have two children, has just moved into town. Suppose that the…

A:

Q: Problem 31-18 Credit policy Cast Iron Company, on each nondelinquent sale, receives revenues with a…

A: Given that , Revenues with a present value = $1260Incurs cost with a value = $1030Using formula ,…

Q: 4. Suppose that Joe is playing the following version of the gambler's ruin problem. He starts with…

A: In this problem, we encounter a modified version of the gambler's ruin problem involving Joe. Joe…

Q: A man throws 5 dice one after another. He will get Rs. 10, Rs. 20, Rs. 30, Rs. 40 and Rs. 50…

A:

Q: A company has 4 (independent) manufacturing plants, and each has $1 million in value. For simplicity…

A: A company has four different manufacturing plants, and each has  million in value.The chance of a…

Q: Sam is applying for a single year life insurance policy worth $71,300.00. If the actuarial tables…

A: x P(x) xP(x) -358 0.99 -354.42 70942 0.01 709.42

Q: The pta plans a spring carnival on a saturday in april. if it's a sunny day, they estimate that they…

A: From the provided information, If it's sunny day than they will make $3,000 but if it rains, they…

Q: discount 9n all items purchased. Your cashier is trying to convince you to open a store credit card…

A: Subpart 3 questions solved in given below

Q: The Gambler's Fallacy is the idea that past events can affect future behavior. The fallacy often…

A: We have to find chi-square test statistic Chi-square test statistic: χ2=∑(Oi-Ei)2EiWhere,  O is…

Q: Find the expected value of the psychic's profit by filling in the boxes below with you answers. Use…

A: Reviewing information, PBoy=0.51P(Girl)=0.49Cost=$20If psychic is wrong, he has to pay back $20

Q: For problem 1 above, what is the probability that at most 4 cars receive gas?

A: The probability distribution of number of cars receiving gas during 30 minutes period is:X012345 or…

Q: Could you do Problem 11, questions d and e?

A: Note:Thank you for the question. As your question has more than 3 parts, according to our policy, we…

Q: An online gambling site offers a first prize of $5000, a second prize of $3000, and a third prize of…

A: given data  first prize of $5000, a second prize of $3000, and a third prize of $1000. It costs $10…

Q: Shamrock Oil owns a parcel of land that has the potential to be an underground oil field. It will…

A: Decision tree as the name stated, it helps to make decisions based on the probability of the…

Q: Question 2. A survey found that 62% of callers in the United States complain about the service they…

A: Given :  If Agent who handle call is foreign than 62 % callers complain about service p(complaint)=…

Q: because the expected value of the game (without considering the cost) is $ arest cent as needed.)

A:

Q: Would you pay $10 per throw of two dice if you were to receive a number of dollars equal to the…

A: Possible number of outcomes when rolling two dice are…

Q: a. In Jamalpur District, 50% of children started primary school, 70% of the children who have…

A: Given that, (a) 50% of children started primary school 70% of the children who have completed…

Q: Players A and B each have $14 at the begining of a game in which each player bets $1 at each play,…

A: In this scenario, Player A and B start a game with $14 each, and in each round, they bet $1 until…

Q: A City of Quincy raffle offers one $800 prize, two $400 prizes and seven $100 prizes. Two thousand…

A: one $800 prize two $400 prizes seven $100 prizes. Two thousand tickets are sold at $50 each.

Q: Mendelev Company is a small producer of several coffee products. One of the products is Kapeng…

A: Given, The probability that the demand will be six boxes is 0.1, for seven boxes is 0.3, for 8 boxes…

Q: Question 1: Arizona’s “Cash 4” is a 4/26 lottery. The lottery costs $1 to enter. If you match all…

A: The probability of winning the lottery will be getting 4 winning numbers and divided by the total…

Q: em #6: An email filter is planned to separate valid e-mails from spam. The word free occurs in 70%…

A: event  A: have free word in email  B: spam messages   P(B) = 0.15 ∴P(B') = 1-0.15 = 0.85 P(A|B) =…