a. From the perspective of the 28-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? b. If the 28-year-old male purchases the policy, what is his expected value? c. Can the insurance company expect to make a profit from many such policies? Why?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
here is a
male lives through the year. A life insurance company charges
for insuring that the male will live through the year. If the male does not survive the year, the policy pays out
as a death benefit. Complete parts (a) through (c) below.
a. From the perspective of the
male, what are the monetary values corresponding to the two
b. If the
male purchases the policy, what is his expected value?
c. Can the insurance company expect to make a profit from many such policies? Why?
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