Expected value is the basis of life insurance. For example, based on US mortality statistics, the probability that a 30-year-old white female will die within the next year is 0.000642. What is the probability that a 30-year-old white female will live another year? 0.999358 A life insurance company plans to issue a one-year term life insurance policy of $500,000 to a 30-year-old white female. What premium should they charge to “break even”? In other words, find the premium such that E(X)=0 In most states, there is a 15% cap on the allowable profit from a life insurance policy. What premium should the company charge to reach that 15% cap on the profit? That is, find the premium such that E(X) = 0.15 x 500,000

Q: An insurance company sells a $10,000 1-year term life insurance policy to people aged 70 - 79 for…

A:

Q: 35 year old man pays $191 for a one year life insurance policy with a coverage of $140,000 if the…

A: Given that a 35 year old man pays $191 for a one year life insurance policy with a coverage of…

Q: According to the statistical abstract of the United States, about 17% of all current 18-22-year-olds…

A: Solution:Convert the given percentage to a probability:The problem states that 17% of current…

Q: Provide an appropriate response with details. A 28 year old man pays $206 for a one year life…

A: From the given information, the probability of he will live through the year is 0.9992. And a 28…

Q: In an effort to cut costs and improve profits, many US companies have been outsourcing. In fact,…

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Q: An insurance company sells a $10,000 one-year term life insurance policy to a customer at an annual…

A: Suppose a variable x defines the net amount get by the company from the policy.

Q: An automobile insurance company has determined the probabilities for various claim amounts for…

A: Given that the data Amount of claim | $20 | $2000 | $4000 | $ 6000 | $8000 | $10000 Probability…

Q: An automobile insurance company has determined the probabilities for various claim amounts for…

A: amount of claim (x) probability P(x) 0 0.70 2000 0.15 4000 0.08 6000 0.05 8000 0.01…

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

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Q: Suppose the probability of an IRS audit is 5.3 percent for U.S. taxpayers who file form 1040 and who…

A: From the provided information, The probability of an IRS audit is 5.3 percent for U.S. taxpayers who…

Q: costs and improve profits, any US companies have been turning to ou rcing. In fact, according to…

A: Solution: Given information:  n= 555 Sample size p= 0.54 Population proportion.

Q: Your company issues flight insurance. You charge $17, and in the event of a plane crash, you will…

A: Given, The probability of a plane crashing on a single trip was 0.00000276. An insurance company…

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: It is estimated that 0.55 percent of the callers to the Customer Service department of Dell…

A: It is estimated that 0.55 percent of the callers to the Customer Service department of Dell…

Q: Ms. Bergen, a loan officer at Coast Bank and Trust, estimates a probability of 0.025 that an…

A:

Q: You play a gambling game with a friend in which you roll a die. If a 1 or 2 comes up, you win $5.…

A: Given that, When a die is rolled then, If a 1 or 2 comes up, you win $5 otherwise you lose $4

Q: Chauncey Billups, a current shooting guard for the Los Angeles Clippers, has a career free-throw…

A: GivenPercentage of carrer free throw (p)=0.894No.of throws(n)=6Let "x" be the no.of free throws that…

Q: On a five-day vacation, the forecast is a 55% chance of rain every day. What’s the probability that…

A: Let p denote the probability of rain every day = 0.55 Let n be days in an vacation = 5 Let the R.V X…

Q: Suppose it is certain that an earthquake will occur someday. What is the probability (to the nearest…

A: Given that there are 365 days in a year.  So (365×24)=8760 hours in a year.    I am at school 4…

Q: A 30-year-old woman wants to purchase a $200,000 one-year life insurance policy. What should the…

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Q: Given that a Condo is purchased, what is the probability the mortgage is Adjustable?

A: The given summarized table is, From the table,  The probability of condo is purchased is,

Q: In an eight-child family, what is the expected number of boys? (Assume that the probability of a boy…

A: Let, X= number of boys  number of observations = n =8  probability of a boy= p = 1/2  So, X follows…

Q: According to the tables used by insurance companies, a 39-year old woman has a 0.163% chance of…

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Q: Miranda decided to buy a $50,000 term life insurance policy from Palmetto Insurance Company to cover…

A: To find the expected cost we will multiply the total amount by the corresponding probability. Age…

Q: An insurance company sells a policy for $800. There is a 1/20 chance that the insurance company will…

A: Random variables are of 2 types, discrete and continuous. A discrete random variable can only take…

Q: probability that exactly two dog bite victims will arrive?

A: Here use poission distribution for  because rate of victims per days bite by dog is constant for…

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: an insurance company says that at age 50 one must chose to take $10,000 at age 60, $30,000 at 70, or…

A:

Q: Suppose that the weight of a particular hand weight is advertised to be 5 pounds, but it can…

A: Answer  Given  minimum value =4.8 Maximum value =5.3 i.e; a=4.8 b =5.3 X~U [a, b] X~U [4.8,5.3] U…

Q: Apparently, depression significantly increases the risk of developing dementia later in life. In a…

A: The given data is as follows:

Q: Sam is applying for a single year life insurance policy worth $71,300.00. If the actuarial tables…

A: x P(x) xP(x) -358 0.99 -354.42 70942 0.01 709.42

Q: If the probability that a randomly chosen college student takes statistics is 0.34, then what is the…

A: The probability that a randomly chosen college student takes statistics is 0.34. The probability…

Q: Suppose the probability of an IRS audit is 2.9 percent for U.S. taxpayers who file form 1040 and who…

A: Given that in the question  Probability of an IRS audit is 2.9 percent for U.S. taxpayers who file…

Q: You determine that your friend who doesn’t own a car has a 90% chance of calling today because it is…

A: Given data: You determine that your friend who doesn’t own a car has a 90% chance of calling today…

Q: A $2600 cash prize is to be awarded at a carnival. If 1300 tickets are sold for $3 each, what is the…

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Q: 5. What type of probability does this prediction demonstrate?

A: Here use basic definition of given terms

Q: In the attatched image is a partially complete probability model. What is the probability for the…

A:

Q: A new applicant, age 32, is applying for a loan. Using the table below, what is the estimated…

A: RecordAgeMaritalLoanRiskDefault134Single$4800.00HighYes224Other$16000.00HighNo331Single$9000.00LowNo…

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.