Insurance: You purchase a $100,000 life insurance policy for a $300 premium each year. If the probability of living is 0.999, find the expected value for the insurance company. Show your work in the table below. Explain what the expected value means for the insurance company
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.
Insurance: You purchase a $100,000 life insurance policy for a $300 premium each year. If the
the expected value means for the insurance company
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