Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of thoseleading a quest to Moria. Based on past experience, the probability of surviving such aquest is 88.5%. If BIC charges a premium of 9,970 silver coins and would pay a deathbenefit of 78,065 silver coins if the insured were to die, what is the expected value of thisinsurance policy to BIC?Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enteryour answer as a negative mumber.

The probability of surviving = 0.885Money earned by BIC if the insured person survives = 9970 silver…

Answered: Brandybuck Insurance Company (BIC) is…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Given that every ninth person in line will get a coupon for a free box of popcorn at the movies, what is the probability that you don’t get a coupon when you’re in line? Enter a fraction or round your answer to 44 decimal places, if necessary.
Suppose you pay $5 to roll a fair dice. If the top face shows an odd number, you win $0 but if it shows an even number, you win $10. What is your expected profit?
John and Larry are fundraisers for UNO. A wealthy benefactor says that he will match whatever John raises in the month of June – so if John raises 10,000 the benefactor will contribute an additional 10,000; if John raises 15,000, the benefactor will contribute an additional 15,000, etc. If John’s average monthly fundraising figure (expected value) is $25,000, and Larry’s is $30,000, what is the expected value for how much money UNO will raise in June?Explicitly state any properties of expectation you use to justify your conclusion.
(See attached image - round to the nearest cent.)
here is a 0.9988 probability that a randomly selected 28-year-old male lives through the year. A life insurance company charges $176 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $80,000 as a death benefit. Complete parts (a) through (c) below. 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?
Assume that the probability of a security breach is 1 percent. The chance of your computer system being damaged during such an attack is 5 percent. If the system is damaged, the average estimated damage will be $ 50 million. What is the expected loss in dollars? In the above question, an insurance agent is willing to insure your facility for an annual fee of $35,000.00. Should the company accept the offer based on the cost benefit analysis?
A company estimates that 0.8% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $250. If they offer a 2-year extended warranty for $35, what is the company's expected value of each warranty sold? Round your answer to the nearest cent.
Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 91.8%. If BIC charges a premium of 8,449 silver coins and would pay a death benefit of 87,797 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative number.
The Business School at State University currently has three parking lots, each containing 155 spaces. Two hundred faculty members have been assigned to each lot. On a peak day, an average of 70% of all lot 1 parking sticker holders show up, an average of 72% of all lot 2 parking sticker holders show up, and an average of 74% of all lot 3 parking sticker holders show up. a. Given the current situation, estimate the probability that on a peak day, at least one faculty member with a sticker will be unable to find a spot. Assume that the number who show up at each lot is independent of the number who show up at the other two lots. Compare two situations: (1) each person can park only in the lot assigned to him or her, and (2) each person can park in any of the lots (pooling). (Hint: Use the RISKBINOMIAL function.) If needed, round your answer to a whole percentage and if your answer is zero, enter "0". No pooling: Pooling: 51.4 % 83.8 % b. Now suppose the numbers of people who show up at…
please solve a) and b)
If the famous insurance company, Lloyd’s of London, insures a $3 million Monet painting for $5000 per year. And, in each year, the painting has a .00021 chance of being stolen according to the Lloyd’s research team? From Lloyd’s perspective, find the expectation for insuring this painting for one year
Suppose best buy offers an extended warranty for $25 on an electronic device whose value is $250. Suppose best buy estimates the probability the item will be returned for a claim on that warranty is 5%. Assume that if an item is returned, best buy will refund the $250 purchase price. What is best buys expected value on the warranty?

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