A man wishes to purchase a life insurance policy that will pay the beneficiary $25,000 in the event that the man's death occurs during the next year. Using life insurance tables, he determines that theprobability that he will live another year is 0.92. What is the minimum amount that he can expect to pay for his premium? Hint: The minimum premium occurs when the insurance company's expectedprofit is zero.

There is 92% percent chances that company will pay nothing and 8 % chances that company will pay…

Answered: A man wishes to purchase 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...

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shift ↑ ctri otop Insurance: An insurance company sells a 1-year term life insurance policy to an 76-year-old woman. The woman pays a premium of $3600. If she dies within 1 year, the company will pay $90,000 to her beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 76-year-old woman will be alive 1 year later is 0.9605. Let X be the profit made by the insurance company. AMD AS ocessor tab caps lock Part: 0/2 Part 1 of 2 (a) Find the probability distribution. The probability distribution is esc It ➜ fn X P(x) n Skip Part ! power. ching design. Type here to search. " 7 n 3600 E Stay connected and entertained 2 Q A Check # Z @ hp ta 2 # W * 3 VILE E S X X 5 alt $ 4 R % DF с 5 T V 10 G 6 # & B Y 99. 7 a hp H 4+ N #3 8 Save For Later © 2023 McGraw Hill LLC. All Rights Reserved. Terms of Use S A O ( 9 JUDO J M Fo > O KL ' P { alt [ Submit Assignment Privacy Center Accessibility 9:23 PM AODE 40 2/21/202 ? = insert L . 1 prt sc 9 pause ctri M…
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ony runs a cell phone kiosk in the mall and has 244 potential customers each day. He has a 7 % chance to make a sale to each customer. Use continuity correction to normally approximate the following probabilities.Round to 4 decimal places.a. The probability that he makes AT LEAST 18 sales b. The probability that he makes AT MOST 16 sales
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