By investing in a stock, Mark can make a profit in one year of 5,000 with a probability of 0.3 or take a loss of 1,000 with a probability of 0.7. What is his expected gain per month?

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

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Q: he probability of a price increase is 0.24 (24%) whereas the probability of a price decrease is 0.05…

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Q: In unprofitable times corporations sometimes suspend dividend payments. Suppose that after a…

A: Solution : This is a case of a markov chain with 2 states, either dividends are paid or they are not…

Q: Melanoma is the most serious form of skin cancer and is increasing at a rate higher than any other…

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Q: A mother figures that her son will forget his homework about 20% of the time. What is the…

A: From the given information, 50% of time that the son will forget his homework and there are 5 school…

Q: Solve the following problem. Mrs. Vines drives to school along the same route Monday through…

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Q: a mother figures that her son will forget his homework about 20% of the time. What is the…

A: Given data: The percentage son forgets his homework is p=20%=0.20. The number of days is n=10. The…

Q: An insurance company sells a $9,000, nine-year term life insurance policy to an individual for $460.…

A: The objective of this question is to calculate the expected return for the insurance company from…

Q: A customer pays  $272.45  for 3-year protection plan for their laptop.  If anything happen to the…

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

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Q: You can insure a $50,000 diamond for its total value by paying a yearly premium of D dollars. Let X…

A: A $50,000 diamond is insured by a yearly premium of D dollars. Let X denote the yearly gain to the…

Q: For most years, 0.95 of the population diagnosed with a certain cancer is adults and 0.05 is female.…

A: Given information- The probability that the population diagnosed with a certain cancer is adults P…

Q: An insurance company sells a $19,000, eight-year term life insurance policy to an individual for…

A: The amount company has to pay if the individual dies = $19,000The probability the individual will…

Q: In what situations we can use probability in real life?

A: In real life, we can use probability for weather forecasting. We can gather data from the previous…

Q: Suppose that 60% of all California motorists are insured. Find the probability  that more than 55%…

A: given data  P(insured) = p = 0.60 sample size n = 100 P(p^>0.55) = ?

Q: The price of a stock is $45. The expected annual return on the stock is 15% and the volatility is…

A: From given data we have: Expected annual return = 15% Volatility = 50% The probability that the…

Q: Sweetwater & Associates write weekend trip insurance at a very nominal charge. Records show that the…

A: n = 400, p = 0.00555Let X be the number of accident during the weekend and file a claim.p be the…

Q: he average wait time to see a doctor at a maternity ward is 16 minutes. What is the probability that…

A: Consider a random variable X which represents the waiting time.  As average wait time to see a…

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: A famous artist wishes to insure his dog for half a million pesos. The insurance company estimates…

A: Let the premium charged by the insurance company = x Total Loss = -x , P(Total Loss) = 0.003 50%…

Q: Suppose that the probability that there is another pandemic in the next year is 40%. And suppose…

A: GivenProbability that there is pandomic in next year=40%=0.40Probability that there is a war with…

Q: The probability that it will rain tomorrow is 0.38. If it rains tomorrow, the probability that it…

A: Event A : rain tomorrow Event B : rain day after tomorrow        P(A)= 0.38P(B|A)  = 0.8P(B|A') =…

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: Justin has a bird feeder which gets visited by an average of 18 birds every 2 hours during daylight…

A: Bird feeder gets an average of 18 birds every 2 hours. The probability that bird feeder will be…

Q: An insurance company sells a $12,000, five-year term life insurance policy to an individual for…

A: From the provided information,An insurance company sells a $12,000, five-year term life insurance…

Q: Find the probability that z is greater than -1.72

A: Given: Z is standard normal r.v. i.e. Z~N(0,1)

Q: Suppose that at a college, 55% of the students earn a degree at the end of four years and 27% earn a…

A: It is given that, at a college 55% of the students earn a degree at the end of four years.

Q: Ashley’s Internet service is terribly unreliable. In fact, on any given day, there is a 75% chance…

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Q: Ashley’s Internet service is terribly unreliable. In fact, on any given day, there is a 60% chance…

A: P(internet connection will lost at some point of day) = p = 0.60 P(not lost connection for  7 days…