An insurance policy sells for $1200. Based on past data, an average of 1 in 100 policyholders will file a $20,000 claim, an average of 1 in 250 policyholders will file a$40,000 claim, and an average of 1 in 400 policyholders will file an $80,000 claim. Find the expected value (to the company) per policy sold. If the company sells 30,000 policies, what is the expected profit or loss?The expected value is $(Simplify your answer.)C

Answered: Image /qna-images/answer/411ccf0a-9c18-4518-8a80-987d191a3633.jpg

Answered: An insurance policy sells for $1200.…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Find the expected value of this investment scheme. Profit/Loss Amount Probability -$6200 0.08 -$150 0.66 $4500 0.02 $2000 0.24
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Q17. A single share of a stock was purchased prior to the company's release of its quarterly report. There is a 58% chance that the company will meet the quarterly sales expectations for its new product two weeks from now, and the value of the stock will go to $440. Otherwise, the company will not meet the quarterly sales expectations, and the value of the stock will go down to $100. What is the expected value of the stock two weeks from now? (Round to the nearest dollar. Do not enter $ sign.)
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