An employee buys a 50,000$ health insurance for 1,200$ good for one year. Based on his previous health records, the probability that this employee will be hospitalized in one year is 0.6541. Find tha payoff valur of the policy.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
1. An employee buys a 50,000$ health insurance for 1,200$ good for one year. Based on his previous health records, the
2. A player draws a card at random from a standard deck of 52 cards. If the card drawn is black, the player wins 2,000$ but if it is red, he loses the same amount. Find the
3. A roulette wheel contains 30 numbers: 20 are blue and 10 are green. The roulette is fair which means that it is equally likely to land on any of the 30 numbers. You win 300$ if the roulette lands on a blue number; otherwise, you lose 200$. What is the expected value or payoff of the game.
4. A lottery that pays off 300,000,000$ is made available for 10,000,000 tickets. Each tickets costs 50$. Suppose the variable Z gives the net winnings from playing the lottery. What is the expected gain for joining the lottery with only one ticket?
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