Miranda decided to buy a $50,000 term life insurance policy from Palmetto Insurance Company to cover her until she is 55. She is currently 50 years old and in good health. The probability of death in a given year is provided by the Social Security Actuarial Life Table. x=x= Age5051525354PP(Death at a Given Age)0.00320.00350.00380.00410.00441. Fill in the expected cost to Palmetto Insurance Company for each year Miranda has the policy.Age at Death5051525354Expected Cost$ Answer $ Answer $ Answer $ Answer $ Answer 2. The insurance company wants to make a profit of $500. How much would they need to charge for the policy? $

Answered: Image /qna-images/answer/81d0ec68-8fef-46b3-831c-264e5933f0a6.jpg

Answered: life insurance policy from Palmetto…

life insurance policy from Palmetto Insurance Company to cover her until she is 55. She is currently 50 years old and in good health. The probability of death in a given year is provided

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: Find the indicated probability. If P(A or B)equals=0.6, P(A)equals=0.5, and P(A and…

A: Given thatP (A or B) = 0.6P (A) = 0.5P (A and B) = 0.25Find P (B)

Q: A quick quiz consists of a multiple-choice question with 5 possible answers followed by a true/false…

A: Given dataMultiple choice questions with 5 possible answers followed by a true and false5 possible…

Q: A certain disease has an incidence rate of 0.1%. If the false negative rate is 7% and the false…

Q: C. The probability that the the child will be older than 5 years old? | 0.8681 d. The probability…

A: Consider that the answer of the given part a, b, and c are the correct answer. And distribution is…

Q: If the probability that an individual will suffer a bad reaction to a given vaccine is 0.17.…

Q: has the virus given that they have tested postive does not have the virus given that they test…

A: A certain virus infects one in every 300 people. A test used to detect the virus in a person is…

Q: A certain disease has an incidence rate of 0.2%. If the false negative rate is 4% and the false…

Q: You purchase a workers' compensation insurance policy to protect against accidents at your…

A: The provided information is as follows:If having a serious accident then the insurance company pay…

Q: find the probability of left of z = 2.3456

A: z-score: The area under the Normal distribution curve represents the probability and the total area…

Q: The probability that someone will pick up the habit of smoking is 0.2. The probability that someone…

A: Given,P(he/she has smoked)=0.2P(some0ne smoke and develops lung cancer)=0.07

Q: If the probability that an event does no occur is 0.3 determine the probability that the event…

Q: If the probability that a vaccine you took will protect you from getting the flu is 0.972, what is…

A: It is given that the probability that a vaccine will protect a person from getting the flu is 0.972.

Q: Suppose that if you got in a collision, your claim amount would be around $25,000. You go to an…

A: Introduction: Denote the random variable X as the amount gained by the insurance company in a…

Q: nown as subjective probability. the law of large numbers. an impossible event.

A: It is an important part of statistics. It is widely used.

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: You have relatives coming for dinner this weekend. The probability that your uncle Josiah will show…

A: given data P(uncle josiah show up) = 0.38 P(aunt Beatrice show up) = 0.27 P(both show up) = 0.1…

Q: If the probability of an event not occurring is 0.68, what is the probability the event will occur?…

A: P(an event not occuring)=0.68

Q: A traffic stop light stays red for 29 sec. Drivers arrive at the stop light at random times. What is…

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

Q: If the probability that a vaccine you took will protect you from getting the flu is 0.932, what is…

Q: Find the indicated probability. P(A or B) =| (Simplify your answer. Type an integer or a decimal.)…

Q: robability of a mild accident is 0.014. et X be the insurance company's net gain or loss on the…

A: For a serious accident, the policy will pay $279,000.For mild accident, the policy will pay…

Q: A certain disease has an incidence rate of 0.6%. If the false negative rate is 4% and the false…

A: we have to find given probability.

Q: If the probability that a randomly chosen college student takes statistics is 0.34, then what is the…

A: The probability that a randomly chosen college student takes statistics is 0.34. The probability…

Q: Find the probability of the indicated event if P(E) = 0.20 and P(F) = 0.45. Find P(E or F) if P(E…

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: A certain virus infects one in every 400 people. A test used to detect the virus in a person is…

Q: If the probability that a vaccine you took will protect you from getting the flu is 0.016 , what is…

A: Given that, The probability that a vaccine you took will protect you from getting the flu is 0.016.…

Q: The probability of a tornado in your home county in any one year is 0.073. What is the probability…

A: Answer:- Given, The probability of a tornado in your home county in any one year is 0.073. That is,…

Q: A quick quiz consists of a true/false question followed by a multiple-choice question with 6…

Q: An insurance company sells a $2,000, eight-year term life insurance policy to an individual for…

A: Given that the individual will live for the next eight years is 0.99. So, the probability that the…

Q: A certain disease has an incidence rate of 0.4%. If the false negative rate is 4% and the false…

A: Given A certain disease has an incidence rate of 0.4%. If the false negative rate is 4% and the…

Q: If the probability of surviving a head-on car accident at 55 mph is 0.052, then what is the…

A: Topic = Probability

Q: Find the probability of the indicated event if P(E)=0.30 and P(F)=0.45. Find P(E or F) if P(E…

A: Solution: From the given information,

Q: Find the probability of the indicated event if P(E) = 0.40 and P(F)=0.50. Find P(E or F) if P(E and…

Q: A certain disease has an incidence rate of 0.8%. If the false negative rate is 8% and the false…

Q: Give in brief the concept of probability

Q: Suppose that you roll a 6-sided die two times. What is the probability that you get a 2 followed by…

Q: If a 60 year-old buys a $1000 life insurance policy at a cost of $70 and has a probability of 0.921…

A: The expectation of the policy until the person reaches 61 is 9 dollarsSo, $9 is equal to 900…

Q: If the probability that an individual will suffer a bad reaction to a given vaccine is 0.19.…

Q: A friend promises to call you at home sometime between 3 p.m. and4 p.m. At 2:45 p.m. you must leave…

A: According to given information:

Q: The probability is 0.309that the gestation period of a woman will exceed 9 months. In 3000human…

A: Given data The probability is 0.309 that the gestation period of woman will exceed 9 months

Q: The probability that a certain make of car will need repairs in the first six months is 0.36 . A…

A: From the provided information, The probability that a certain make of car will need repairs in the…

Question

Miranda decided to buy a $50,000 term life insurance policy from Palmetto Insurance Company to cover her until she is 55. She is currently 50 years old and in good health. The probability of death in a given year is provided by the Social Security Actuarial Life Table.

x=x= Age	50	51	52	53	54
PP(Death at a Given Age)	0.0032	0.0035	0.0038	0.0041	0.0044

1. Fill in the expected cost to Palmetto Insurance Company for each year Miranda has the policy.

Age at Death	50	51	52	53	54
Expected Cost	$ Answer	$ Answer	$ Answer	$ Answer	$ Answer

2. The insurance company wants to make a profit of $500. How much would they need to charge for the policy? $

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: Fill in the expected cost to Palmetto Insurance Company for each year Miranda has the policy

VIEW

Step 2: The insurance company wants to make a profit of $500. How much would they need to charge for the pol

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

If the probability that a vaccine you took will protect you from getting the flu is 0.962, what is the probability that you will get the flu? Probability that you will get the flu =
A certain disease has an incidence rate of 0.1%. If the false negative rate is 7% and the false positive rate is 3%, compute the probability that a person who tests positive actually has the disease.
The probability of an event occurring is 3/7. Determine the odds against the event occurring.
If the probability that an individual will suffer a bad reaction to a given vaccine is 0.19. Determine the probability that out of 3 individuals, at least two will suffer a bad reaction. [The answer should be a number rounded to five decimal places, don't use symbols such as %]
You have relatives coming for dinner this weekend. The probability that your uncle Josiah will show up is 0.69. What is the probability that uncle Josiah doesn't show up? Enter your answer as a decimal, rounded to three decimal places.
An insurance company sells a $12,000, five-year term life insurance policy to an individual for $640. Find the expected return for the company if the probability the individual will live for the next five years is 0.98. (Round your answer to the nearest cent.) (Don't Hand writing in solution) .
An insurance company sells a $20,000, seven-year term life insurance policy to an individual for $1,700. Find the expected return for the company if the probability the individual will live for the next seven years is 0.92. (Round your answer to the nearest cent.)$
An insurance company sells a $11,500, five-year term life insurance policy to an individual for $860. Find the expected return for the company if the probability the individual will live for the next five years is 0.96. (Round your answer to the nearest cent.)
Find the indicated probability. If P(A or B) = 0.8, P(A) = 0.3, and P(A and B) = 0.15, find P(B). P(B) =| (Simplify your answer. Type an integer or a decimal.)
If the probability that an individual will suffer a bad reaction to a given vaccine is 0.13. Determine the probability that out of 4 individuals, none will suffer a bad reaction. [The answer should be a number rounded to five decimal places, don't use symbols such as %]
A certain disease has an incidence rate of 0.7%. If the false negative rate is 8% and the false positive rate is 4%, compute the probability that a person who tests positive actually has the disease.
A certain disease has an incidence rate of 0.2%. If the false negative rate is 5% and the false positive rate is 1%, compute the probability that a person who tests positive actually has the disease.