he probability that an 80-year-old male in the U.S. will die within one year is approximately 0.069941. If an insurance company sells a one-year, $10,000 life insurance policy to such a person for $485, what is the company's expectation? (Round your answer to two decimal places.) $

he probability that an 80-year-old male in the U.S. will die within one year is approximately 0.069941. If an insurance company sells a one-year, $10,000 life insurance policy to such a person for $485, what is the company's expectation? (Round your answer to two decimal places.) $

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Related questions

Q: Suppose in a certain year, the probability that a person in the United States would declare personal…

A: Let P denotes personal bankruptcy and M denotes medical related issue.The probability that a person…

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: The probability that the return will be below X% is approx. 0.16. What is the value of X for Stock…

A: We are given:p = 0.16 (probability of return being below X%)For Stock A and Stock B:X = (1 - p) *…

Q: Round your answers to 4 decimal digits. An author has written a book and submitted it to a…

A: Probability distribution : A likelihood distribution could be a function that calculates the chance…

Q: DETAILS TEAFMAC2 3.2.032. MY NOTES An insurance company sells a $14,000, seven-year term life…

Q: A California water company has determined that the average customer billing is $1,225 per year and…

A: Mean = µ = $1225 And distribution is exponential

Q: If the probability that your DVD player breaks down before thb extended warranty expires is 0.074,…

A: Given Information - The probability that a DVD player breaks down before the extended warranty…

Q: A 36 year old man in the United States has a 0.215% risk of dying during the next year. An…

Q: Decide whether the following statement makes sense (or is clearly true) or does not make sense (or…

A: In this context, a negative expected value implies that, averaged over many tickets, you should…

Q: A company estimates that 0.9% of their products will fail after the original warranty period but…

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: Kiara sets up a passcode on her tablet, which allows only six-digit codes. She has heard that it's…

A: Kiara sets up a pass-code on her tablet, which allows only six-digit codes. She has heard that it's…

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

Q: Drug tests are designed with a known sensitivity. However, those interested in such tests want to…

A: Given information: The accuracy of the test is 99% and that 0.5% of the population uses the drug.…

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: Attorneys often use lie detectors to test if a suspect is speaking the truth or not. It is found…

Q: A 40-year-old man in the U.S. has a 0.247% risk of dying during the next year. An insurance company…

A: Given information- We have given that a 40-year-old man in the IS has a 0.247% risk of dying during…

Q: An insurance company expects 14% of its policyholders to collect claims of $300 this year and the…

A: We have given that An insurance company expects 14% of its policyholders to collect claims of $300…

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: On a five-day vacation, the forecast is a 75%75% chance of rain every day. What’s the probability…

A: probability mass function of B.D is = f ( k ) = ( n k ) p^k * ( 1- p) ^ n-kwhere k = number…

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: Maggie is practicing her penalty kicks for her upcoming soccer game. During the practice, she…

A: Sample size, n = 10Probability , p = 65% = 0.65

Q: You have a craving for Mrs. Fields gourmet cookies. You have a choice of oatmeal raisin, macadamia…

A: Given that I like 6 types of cookies. Among them 2 types of cookies contain chocolates. So (6-2)=4…

Q: Your lemonade stand takes in $ 6.00 on a weekday and $ 12.50 each on Saturday and Sunday. With these…

A: We have to find out given mean.

Q: sed on previous weather records, the probability that the city of Calgary will have a "White…

A: To find the probability that there will be a "White Christmas" in the city of Calgary the next 2…

Q: Which of the following is the balance for a single $2700 deposit in an account with an APR of 4.5%…

A: principle (p)=$2700rate (r)=4.5%Time (t)=7 years

Question

The probability that an 80-year-old male in the U.S. will die within one year is approximately 0.069941. If an insurance company sells a one-year, $10,000 life insurance policy to such a person for $485, what is the company's expectation? (Round your answer to two decimal places.)
$

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

If the probability that your DVD player breaks down before the extended warranty expires is 0.097, what is the probability that the player will not break down before the warranty expires? The probability that the player will not break down before the warranty expires is (Simplify your answer. Type an integer or a decimal.)
An insurance company sells a $2,000, eight-year term life insurance policy to an individual for $220. Find the expected return for the company if the probability the individual will live for the next eight years is 0.99. (Round your answer to the nearest cent.)
d. Predict the monthly profit for a month when advertising is $2,100. Round to the nearest cent e. If the expected profit in a particular month is $45,837, about how much should be set aside for advertising that month?
The chance of winning a lottery game is 1 in approximately 22 million. Suppose you buy a $1 lottery ticket in anticipation of winning the $6 million grand prize. Calculate your expected net winnings for this single ticket. Interpret the result.
During one year, a particular mutual fund outperformed the S&P 500 index 32 out of 52 weeks. Find the probability that it would perform as well or better again. Round to four decimal places as needed
If a 60 year-old buys a $1000 life insurance policy at a cost of $70 and has a probability of 0.921 of living to age 61, find the expectation of the policy until the person reaches 61. Round your answer to the nearest cent
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?
The probability is 0.309that the gestation period of a woman will exceed 9 months. In 3000human gestation periods, roughly how many will exceed 9 months? Roughly? human gestation periods will exceed 9 months.
An insurance company issues a policy for a diamond ring worth $15,000 for an annual premium of $225.00. If the company figures the probability of the ring to be lost or damaged is 0.005, what is the company's expected profit? Round your answer to nearest cent. (e.g. $135.789 would enter as 135.79)
Richies insurance company offers a 250,000 life insurance policy for a premium of $750 per year. If the probability you live through the year is .9977 what is the expected value to the insurance company
The probability that a 29-year old female will die within 1-year is 0.000594. If an insurance company sells a 1-year, $50000 life insurance policy to a 29-year old female for $77, what is the expected value for the insurance company? Round your answer to the nearest cent.
An insurance company sells a $20,000, seven-year term life insurance policy to an individual for $1,700. Find the expected return for the company if the probability the individual will live for the next seven years is 0.92. (Round your answer to the nearest cent.)$