4. FILE Daniel-James Insurance Company will insure an offshore ExxonMobil oil pro-duction platform against weather losses for 1 year. The president of Daniel-Jamesestimates the following losses for that platform (in millions of dollars) with the accompa-nying probabilities:Amount of Loss($ millions)040300Probabilityof Loss.98.016.004a. What is the expected amount Daniel-James will have to pay to ExxonMobil inclaims?

Let,x be the amount of loss(in million) andPx be the probability of lossGiven thatAmount of Loss…

Answered: LE Daniel-James Insurance Company will…

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...

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A concession stand at a pool tends to get $500 in profit on hot days, $300 on average days, and $200 on cool days. If it is hot 39% of the time, average 47% of the time, and cool 14% of the time, what is the expected value of their profit? Please round to the nearest whole dollar. Profit = Please express your answer as a whole number without any decimals or any other symbols. On a particular type of property insurance policy, about 1 in every 5,000 policies a year tend to make a sizable claim (in other words, a probability of 0.02%, or 0.0002). The claims tend to average about s110000. What would be a fair rate on this policy (before adjusting to cover operating costs)? Please round to the nearest whole dollar. Fair price = $ Please enter only digits into the box. Do not include dollar signs, commas, or any other symbols
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 10-year survival rate for blood cancer is approximately 12%. If 145 people who have blood cancer are treated for the disease, calculate the probability that: (i) no one will survive for 10 years. (ii) not more than 4 will survive for 10 years.
3. What would be the yearly premium for a $50,000 insurance policy against accidental household flood if the likelihood of an accidental household flood is estimated to be 0.005 and the company wishes to have a yearly expected gain of $2000? a. $2, 250. b. $2,550. c. $2,500. d. $2,520. 4. A manufacturer of electronic equipment buys spare parts for replacement and repairs in lots of one-thousand from the supplier. The manufacturer uses these spare parts to fix items under warrantee. Past historical records show that the probability of any one spare part being defective is unlikely and assumed to be one in one-thousand. In a shipment of one-thousand spare parts the probability of two defectives is a. 0.148. b. 0.184. c. 0.366. d. 0.386. 5. What is the probability of getting exactly three heads in five flips of a balance coin? a. 5/16 b. 3/16 c. 7/16 d. 9/16
If the famous insurance company, Lloyd’s of London, insures a $3 million Monet painting for $5000 per year. And, in each year, the painting has a .00021 chance of being stolen according to the Lloyd’s research team? From Lloyd’s perspective, find the expectation for insuring this painting for one year
Suppose best buy offers an extended warranty for $25 on an electronic device whose value is $250. Suppose best buy estimates the probability the item will be returned for a claim on that warranty is 5%. Assume that if an item is returned, best buy will refund the $250 purchase price. What is best buys expected value on the warranty?
Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 88.5%. If BIC charges a premium of 9,970 silver coins and would pay a death benefit of 78,065 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative mumber.
How would you explain the EXPECTED VALUE in gambling, buying an insurance or in our daily life? Please bring an example. Thank you!
A company estimates that 0.1% of their product will fail after th original warranty period but within 2 years of the purchase, with a replacement cost of $350. If they offer a 2 year warranty for $18 , what is the company's expected value of each warranty sold?

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