Based on historical data, an insurance company estimates that a particular customer has a 2.4% likelihood of having an accident in the next year, with the average insurance payout being $2700. If the company charges this customer an annual premium of $290, what is the company's expected value of this insurance policy?

Q: During one eight-week period, a particular mutual fund outperformed the S&P 500 index 27 out of 40…

A:

Q: Based on historical data, an insurance company estimates that a particular customer has a 2.7%…

A: We are given that,Based on historical data, an insurance company estimates that a particular…

Q: Based on historical data, an insurance company estimates that a particular customer has a 2.3%…

A:

Q: A television manufacturer estimates that about one percent (196) of one of their products will fail…

A: Proportion of products that will fail within warranty = 0.01 Replacement cost to company = P 20,000…

Q: Question 1 > The student council is hosting a drawing to raise money for scholarships. They are…

A: Given information: Selling price of ticket = $9 Number of tickets = 600 Number of grand prize = 1…

Q: c. What is the probability that Lynn will have more than $1 million in her retirement fund when she…

A: Given:-             c. What is the probability that Lynn will have more than $1 million in her…

Q: If the company wants to offer a 2 year extended warranty, what price should they charge so that…

A: A company that makes computers estimates that 2% of their hard drives will fail after the original…

Q: A company estimates that 0.3% of their products will fail after the original warranty period but…

A:

Q: A 28-year-old man pays $110 for a one-year life insurance policy with coverage of $100,000. If the…

A:

Q: the company figures that the probability of the house being burned down by fire is 0.005, what will…

A: Given that an insurance company insures a house worth P4,500,000 for an annual premium of P25,000.

Q: A company estimates that 0.7% of their products will fail after the original warranty period but…

A:

Q: A 40-year-old man in the U.S. has a 0.243% risk of dying during the next year . An insurance company…

A: Given data Probability of dying = 0.00243 Cost for the insurance = $290 Insurance company will pay…

Q: An insurance company sells policies for $1,000 each. Based on historical data, an average of 1 in…

A: Introduction: Insurance is an agreement defined by a scheme under which a person or agency receives…

Q: The probability of weather-related crop damage during the growing season in a typical year is given…

A: Given:

Q: The Texas DOT is comparing two alternative pavement treatments with the following characteristics.…

A: For getting the least expensive alternative, we will use effective annual cost method. Please find…

Q: Based on data, an insurance company estimates that a particular customer from a certain group has a…

A: It is given that-Probability that the customer will have accident next year = 0.039Average insurance…

Q: The probability that a 50-year-old man will survive a fixed length of time is 0.995. An insurance…

A:

Q: A company estimates that 0.85% of their products will fail after the original warranty period but…

A:

Q: You have a 30% chance of getting job A with a salary of $20,000 the first year. It will cost you…

A: Given : Chance of getting job = 0.30   (30%) First year salary = $20,000 expenses = $500

Q: The probability that a 50-year old female will die within 1-year is 0.000829. If an insurance…

A: From the provided information, The probability that a 50-year-old female will die within 1-year =…

Q: Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest…

A: Given: BIC charges a premium = 6591 silver coins. BIC pay a death benefit = 47460 The probability of…

Q: A company estimates that 0.3% of their products will fail after the original warranty period but…

A: Let X be a discrete random variable that assumes values x1,x2, ... xn  with respective…

Q: An insurance company sells a $2,000, eight-year term life insurance policy to an individual for…

A: Given that the individual will live for the next eight years is 0.99. So, the probability that the…

Q: There is a 0.99965 probability that a randomly selected 29-year-old female lives through the year.…

A: Given,Probability that a randomly selected 29-year-old female lives through the year is, p =…

Q: Avicenna, a major insurance company, offers five-year life insurance policies to 65-year-olds. If…

A:

Q: Suppose you pay $5 to roll a fair dice. If the top face shows an odd number, you win $0 but if it…

A: Cost of rolling a fair dice=5 Amount you win if odd number shows=0 Amount you win if even number…

Q: If a 60 year-old buys a $1000 life insurance policy at a cost of $70 and has a probability of 0.921…

A: The expectation of the policy until the person reaches 61 is 9 dollarsSo, $9 is equal to 900…

Q: A 30-year-old woman wants to purchase a $300,000 one-year life insurance policy. What should the…

A:

Q: Suppose a stock sells for $45 today. The annual volatility of the stock is 37%, and analysts predict…

A: Let X be a random variable such that X: One year rate of return The expected returns from the stock…

Q: 1. ABC inc. stock is currently selling for $30, one year from today the stock price can either…

A: The objective is to calculate the value of a European put option using the Binomial Option Pricing…

Q: An insurance company has written 50 policies for ​$125,000​, 100 policies for ​$30,000​, and 250…

A: we can find n = (50*125000+100*30000+250*10000) = 11750000

Q: A company estimates that 0.1% of their products will fail after the original warranty period but…

A: Given Information Probability of replacing in first 2 years  = 0.001 Cost of replacement =  $300…

Q: A company estimates that 0.7% of their products will fail after the original warranty period but…

A:

Q: A company estimates that 0.6% of their products will fail after the original warranty period but…

A: Given information- We have given that a company estimates that 0.6% of their products will fail…