c. What is the probability that Lynn will have more than $1 million in her retirement fund when she reaches age 60? 19. Lynn Price recently completed her MBA andaccepted a job with an electronics manufacturingcompany. Although she likes her job, she is alsolooking forward to retiring one day. To ensure that herretirement is comfortable, Lynn intends to invest $3,000of her salary into a tax-sheltered retirement fund at theend of each year. Lynn is not certain what rate of returnthis investment will earn each year, but she expectseach year's rate of return could be modeledappropriately as a normally distributed random variablewith a mean of 12.5% and standard deviation of 2%.

Answered: c. What is the probability that Lynn…

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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You are considering buying a car from a company which offers an insurance plan for a one-time cost today of $75. For this price, the company will cover any repair costs over $50 each year for the next 5 years. You estimate that the probability of the new car requiring a repair exceeding $50 is 0.01 during the first year, 0.025 during the second, 0.045 for the third, 0.07 for the fourth, and 0.10 for the fifth year. Assuming the occurrence of a repair in each year is statistically independent and your MARR is 10%, what annual amount of a repair (exceeding $50) each year for 5 years would make you indifferent to buying the insurance. In other words, at what annual repair amount would you break even on your insurance cost?
Avicenna, a major insurance company, offers five-year life insurance policies to 65-year-olds. If the holder of one of these policies dies before the age of 70, the company must pay out $27,400 to the beneficiary of the policy. Executives at Avicenna are considering offering these policies for $765 each. Suppose that for each holder of a policy there is a 3% chance that they will die before the age of 70 and a 97% chance they will live to the age of 70. If the executives at Avicenna know that they will sell many of these policies, should they expect to make or lose money from offering them? How much? To answer, take into account the price of the policy and the expected value of the amount paid out to the beneficiary. Avicenna can expect to make money from offering these policies. In the long run, they should expect to make dollars on each policy sold. O Avicenna can expect to lose money from offering these policies. In the long run, they should expect to lose dollars on each policy…
Tonto Silverheels is a loan processor at the Loan Arranger, a business specializing in home refinance. Forty percent of the loan applications received by Tonto will qualify for a loan. What is the probability that for the next 20 loan applications that Tonto receives, the number qualifying for a loan is... a. 10 or fewer? b. Between 6 and 10? c. Exactly 6? d. Tonto gets a $200 commission on each qualifying loan, what is Tonto’s expected total commission from these 20 applications?
47. A person has a yearly income of $100,000 which gives him 100 units of utility. This person has a 10% chance of getting an illness that would result in the total loss of a year's income. What is this person's expected loss? O a. $10,000 O b. $20,000 O c $30,000 O d. $40,000 O e. None of the above.
Records show that 40% of the college students of a particular university pay their tuition fees on installment basis. What is the probability that exactly 12 of the next 20 enrollees will pay their tuition fees on installment basis?
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.
A company prices its tornado insurance using the following assumptions:• In any calendar year, there can be at most one tornado.• In any calendar year, the probability of a tornado is 0.07.• The number of tornadoes in any calendar year is independent of the number of tornados in any other calendar year.Using the company's assumptions, calculate the probability that there are fewer than 2 tornadoes in a 13-year period. Round your answer to 4 decimals.
Is this right?
A company offers a 2-year warranty on a product for $35. Replacing the product to the consumer who purchases the warranty costs the company $200. The quality control division estimates that 0.25% of their products will fail within the fırst 2 years. What is the company's expected value for each warranty sold?
You are working as a portfolio manager for an Asset Management firm. The following table provides the annual returns expected under various market conditions or regime. Each regime has the probability given in the table (i.e. P(Pandemic) = 0.05 and P(Recession) = 0.20, and so on)...Please answer the following questions from the data in the table:
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?
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.

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