Jim has a 5-year-old car in reasonably good condition. He wants to take out a $60,000 term (that is, accident benefit) car insurance policyuntil the car is 10 years old. Assume that the probability of a car having an accident in the year in which it is x years old is as follows:5x-ageP(accident)6780.01182 0.01282 0.01386 0.0151390.01602Jim is applying to a car insurance company for his car insurance policy. If the car insurance company wants to make a profit of $900 abovethe expected total losses of $4179, how much should it charge for the policy?Select one:a. $901O b. $893°c. $913Od. $903°e. $905

Step 1: Step 2: Step 3: Step 4:

Answered: Jim has a 5-year-old car in reasonably…

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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Suppose a person is looking for a one-year life insurance policy. They decide on a $232994 policy. This policy costs $291 per year. Suppose the probability the person dies in the year is 0.0006. Find the expected value of the policy for the insurance company. Give your answer as a decimal to at least two decimal places.
You purchase a brand new car for $17,000 and insure it. The policy pays 78% of the car's value if there is an issue with the engine or 30% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.009, and the probability there is an issue with the speaker system is 0.02. The premium for the policy is p. Let X be the insurance company's net gain from this policy. (a) Create a probability distribution for X, using p to represent the premium on the policy. Enter the possible values of X in ascending order from left to right. X P(X)
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
You purchase a brand new car for $15,000 and insure it. The policy pays 78% of the car's value if there is an issue with the engine or 30% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.009, and the probability there is an issue with the speaker system is 0.02. The premium for the policy is p. Let X be the insurance company's net gain from this policy. (a) Create a probability distribution for X, using p to represent the premium on the policy. Enter the possible values of X in ascending order from left to right. P(X) (b) Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent
An insurance company sells a one year term life insurance policy to an 80 year old woman. The woman pays a premium of $1000. If she dies within one year, the company will pay $18,500 to her beneficiary. According to the company's statistics department, the probability that an 80 year old woman will be alibve one year later is 0.9581. Find the expected value of the insurance company's profit.
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An insurance policy on an electrical device pays a benefit of $2400 if the device fails during the first year. The amount of the benefit decreases by $800 each successive year until it reaches 0 . If the device has not failed by the beginning of any given year, the probability of failure during that year is 0.29.Find the expected benefit under this policy.

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