Suppose a life insurance company sells a $220,000 1-year term life insurance policy to a 20-year-old female for $230. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. Compute and interpret the expected value of this policy to the insurance company.The expected value is $____.(Round to the nearest cent as needed.)Which of the following interpretations of the expected value is correct? Select the correct choice below and fill in the answer box to complete your choice.(Round to the nearest cent as needed.)- ○ A. The insurance company expects to make a profit of $____ on every 20-year-old female it insures for 1 month.- ○ B. The insurance company expects to make a minimum profit of $____ on every 20-year-old female it insures for 1 month.- ○ C. The insurance company expects to make a profit of $____ on every 20-year-old female it insures for 1 year.- ○ D. The insurance company expects to make a maximum profit of $____ on every 20-year-old female it insures for 1 year.

Answered: Image /qna-images/answer/e59cc2ec-3f9e-40a2-b8cc-58222d94c1a4.jpg

Answered: K Suppose a life insurance company…

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 that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $15. If you roll a 3, 4 or 5, you win $1. Otherwise, you pay $10. a. Complete the PDF Table. List the X values, where X is the profit, from smallest to largest. Round to 4 decimal places where appropriate. Probability Distribution Table X P(X) b. Find the expected profit. $ (Round to the nearest cent) c. Interpret the expected value. This is the most likely amount of money you will win. O If you play many games you will likely lose on average very close to $0.33 per game. O You will win this much if you play a game. d. Based on the expected value, should you play this game? O No, this is a gambling game and it is always a bad idea to gamble. O Yes, since the expected value is positive, you would be very likely to come home with more money if you played many games. O Yes, because you can win $15.00 which is greater than the $10.00 that you can lose. O Yes, since the expected value is 0,…
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