A man pays $160 a year for a life insurance policy with coverage of $145,000 payableto his survivor upon his death. The probability that he will live through the year is 0.9992(a) Establish the probability distribution table for this problem. (In this case the random variable X describesthe possible payouts (positive or negative) the man or his survivor might receive.)(b) Compute the expected value of possible payouts from the insurance company.

According to given data: The probability that the he will live through the year is 0.9992. The…

Answered: A man pays $160 a year for a life…

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...

See similar textbooks

Similar questions

Let X = {Email, In Person, Instant Message, Text Message}; P(Email) = 0.06 P(In Person) = 0.55 P(Instant Message) = 0.24 P(Text Message) = 0.15 Is this model a probability distribution? A. Yes. B. No. C. Maybe.
Based on data from a statistical abstract, only about 11% of senior citizens (65 years old or older) get the flu each year. However, about 23% of the people under 65 years old get the flu each year. In the general population, there are 11.5% senior citizens (65 years old or older). (Round your answers to three decimal places.) (a) What is the probability that a person selected at random from the general population is senior citizen who will get the flu this season?(b) What is the probability that a person selected at random from the general population is a person under age 65 who will get the flu this year?(c) Repeat parts (a) and (b) for a community that has 91% senior citizens. (a) (b) (d) Repeat parts (a) and (b) for a community that has 48% senior citizens. (a) (b)
Suppose a life insurance company sells a $230,000 1-year term life insurance policy to a 20-year-old female for $220. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to the nearest cent as needed.)
(a). A 22-year-old male pays $275 for a 1-year $150,000 life insurance policy. What is the expected value of the policy for the policy holder?(b). A 21-year-old female pays $150 for a 1-year $120,000 life insurance policy. What is the expected value of the policy for the policy holder?
Assume that the probability of a 25-year-old male living to age 26, based on mortality tables, is 0.993. If a 16,000 dollar one-year term life insurance policy on a 25-year-old male costs 100 dollars, what is its expected value? What is the expected value? The expected value is dollars.
Based on data from a statistical abstract, only about 13% of senior citizens (65 years old or older) get the flu each year. However, about 30% of the people under 65 years old get the flu each year. In the general population, there are 10% senior citizens (65 years old or older). (Round your answers to three decimal places.) (a) What is the probability that a person selected at random from the general population is senior citizen who will get the flu this season? (b) What is the probability that a person selected at random from the general population is a person under age 65 who will get the flu this year? (c) Repeat parts (a) and (b) for a community that has 91% senior citizens and repeat parts (a) and (b) for a community that has 49% senior citizens. please explain the symbols, that is what is keeping me from successfully learning this
Based on data from a statistical abstract, only about 10% of senior citizens (65 years old or older) get the flu each year. However, about 26% of the people under 65 years old get the flu each year. In the general population, there are 14.5% senior citizens (65 years old or older). (Round your answers to three decimal places.) (a) What is the probability that a person selected at random from the general population is senior citizen who will get the flu this season?(b) What is the probability that a person selected at random from the general population is a person under age 65 who will get the flu this year?(c) Repeat parts (a) and (b) for a community that has 88% senior citizens. (a) (b) (d) Repeat parts (a) and (b) for a community that has 47% senior citizens. (a) (b)
During a year ending April 30 of that year, there were approximately 5.0 million sales of existing homes in the United States, of which 1.1 million were sold in the West. During April of that year there were a total of 410,000 existing homes sold in the United States, of which 130,000 were sold in the West. (Round your answers to two decimal places.) (a) Find the probability that a home sale in the year ending April 30 of that year, took place in the West, given that the home was sold during April of that year. (b) Find the probability that a home sale in the year ending April 30 of that year, took place in April of that year, given that it took place in the West.
Suppose a life insurance company sells a $220,000 one-year term life insurance policy to a 24-year-old female for $300. The probability that the female survives the year is 0.999547. Compute and interpret the expected value of this policy to the insurance company. (a) The expected value is ___ (b) What interpretation of the expected value is correct?
The weather in Rochester in December is fairly constant. Records indicate that the low temperature for each day of the month tend to have a uniform distribution over the interval 15° to 35° F. A business man arrives on a randomly selected day in December. (a) What is the probability that the temperature will be above 28°? (b) What is the probability that the temperature will be between 17° and 27°? (c) What is the expected temperature?
Sara is a 60-year-old Anglo female in reasonably good health. She wants to take out a $50,000 term (that is, straight death benefit) life insurance policy until she is 65. The policy will expire on her 65th birthday. The probability of death in a given year is provided by the Vital Statistics Section of the Statistical Abstract of the United States (116th Edition). x = age 60 61 62 63 64 P(death at this age) 0.00562 0.00842 0.00950 0.01065 0.01165 Using this probability and the $50,000 death benefit, what is the expected cost to Big Rock Insurance? (b) Repeat part (a) for ages 61, 62, 63, and 64. Age Expected Cost 61 $ 62 $ 63 $ 64 $ What would be the total expected cost to Big Rock Insurance over the years 60 through 64? If Big Rock Insurance wants to make a profit of $700 above the expected total cost paid out for Sara's death, how much should it charge for the policy? If Big Rock Insurance Company charges $5000 for the policy, how much profit does the…

Recommended textbooks for you

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

SEE MORE TEXTBOOKS