Find the expected value to the company per policy sold (round to the nearest dollar) If the company sells 20,000 policies, what is the expected profit or loss
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An insurance policy sells for $3,200 for a family of 5. Based on past data, an average of 1 in 40 policyholders will file a $10,000 claim, and average of 3 out of 400 will file a $50,000 claim and 2 out of 2,500 will file a $100,000 claim
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If the company sells 20,000 policies, what is the expected profit or loss
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- 4. Along with interest rates, life expectancy is a component in pricing financial annuities. Suppose that you know that last year average life expectancy was 77 years for your annuity holders. Now you want to know if your clients this year have a longer life expectancy, on average, so you randomly sample n=20 of your recently deceased annuity holders to see actual age at death. Using a 5% level of significance, test whether or not the new data shows evidence of your annuity holders now live longer than 77 years, on average. The data below are the sample data (in years of life): (78,75,83,81,81,77,78,79,79,81,76,79,77,76,79,81,73,74,78,79) a) Does this sample indicate that life expectancy has increased? Test an appropriate hypothesis and state your conclusion (use a 5% level of significance). Be sure to check the necessary assumptions and conditions before conducting your test. b) Construct A 90% confidence interval for the true average age of death for the population of your annuity…If a fictional treatment costs a total of $45,000 at today’s value and increases a person’s quality of life from 0.5 to 0.6 for the remainder of the person’s life from age 70 onward, and the person’s expected life span increases from 73 to 75, what is the total gain in QALYs (Quality-adjusted Life Years), and what is the ICER (Incremental Cost-effectiveness Ratio)?A recent survey showed that 94 adults out of a sample of 500 have high blood pressure. However, 108 of those studied reported being unwilling to change their diet. Based on this sample, if an adult is chosen at random, what is the probability that he or she is open to trying to eat more healthfully? Express your answer as a fraction in lowest terms or a decimal rounded to the nearest millionth.
- Based on predictive modeling, this upcoming Winter is going to have very unpredictable weather. The National Weather service is considering abolishing specific long-term forecasts, and instead will utilize a statistical model that predicts a mean of six significant snowfalls per month. Use this information to answer the following question correctly: Trying to be forward-thinking, I'm going to try planning my one month long Winter Break based around this model's predictions. I will only travel for the holidays if there is at most one significant snowfall over winter break. What is the probability of this happening? O 0.0174 O 0.0149 O 0.0025 O 0.0542According to government data, 30% of married Americans married after 30. A study of married people chooses a random sample of 400 married Americans and asks persons in the sample the age at marriage. What is the expected number of married Americans in this sample that married after30???
- The table below represents the number of portable household generators sold by 20 Gauteng-based enterprises in the fourth quarter of 2022. 35 50 66 45 25 79 31 42 19 41 5 75 62 48 69 56 83 45 39 98 Given that the average selling price of a portable household generator was R15, 000 during the fourth quarter of 2022, what is the expected total revenue generated from the sale of the portable household generators by all the enterprises that sold at least 60 portable household generators during the quarter? Using the raw data, determine the standard deviation and coefficient of variation of the sample data. Given that the average selling price of a portable household generator was R15, 000 during the fourth quarter of 2022, what is the expected total revenue generated from the sale of the portable household generators by all the enterprises that sold at least 60 portable household generators during the quarter? 2. To extract…On March 28, 1979, the nuclear generating facility at Three Mile Island, Pennsylvania, began discharging radiation into the atmosphere. People exposed to even low levels of radiation can experience health problems ranging from very mild to severe, even causing death. A local newspaper reported that 11 babies were born with kidney problems in the three-county area surrounding the Three Mile Island nuclear power plant. The expected value for that problem in infants in that area was 3. Answer the following questions. 7. Do you think that pregnant mothers living in that area should be overly concerned after looking at the results in terms of rates?A small business is studying the number of customers that enter the store. They record the number of customers entering every hour for three days, and find that 27% of the time two customers enter the store in an hour, 28% of the time of the time one customer enters the store in an hour, and the remainder of the time no one enters the store in an hour. What is the expected number of customers per hour?
- A scatterplot with no linear trend will have an r value of zero true or false?An Associated Press story in Easton, Maryland’s The Star Democrat on June 3, 2010 reported thatAll told, scam artists are believed to have stolen about $47 billion from Medicare in the 2009 fiscal year, nearly triple the toll a year earlier. Medicare spokesman Peter Ashkanaz said that…charges have been filed against 103 defendants in cases involving more than $100 million in Medicare fraud.(a) What percentage of the Medicare fraud has been targeted by filed charges?(b) What is the average claim in each fraud charge?(c) How many of these average size claims would need to be filed to recover the entire $47 billion?
