Problem #2: Death for (x) is distributed such that the probability that an individual dies in the next 3 months is always thesame regardless of their age. The probability that (x) will survive for 5 years is 35.8486%. What is the APV (theEPV) of the payout of a 1.5 year term life insurance policy on (x) if it pays $100,000 at the end of a quarter inwhich (x) dies? Use an annual interest rate of 9% compounded monthly (that's not a typo; I am giving you themonthly rate).Problem #2:answer correct to the nearest dollar

Probability of survival for 5 years: 35.8486%The policy pays $100,000 at the end of a quarter in…

Answered: Death for (x) is distributed such that…

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

Similar questions

At a bank, there is a line of 3 people and only one cashier that serves one person at a time. The time that the cashier takes to serve each person has an exponential distribution with a mean of 5 minutes. Calculate the probability that the total time of serving the 3 people is less than 15 minutes. Assume that the serving times are independent.
Your website receives one hit every 11 minutes on average. The times between successive hits follow an exponential distribution. What is the probability that at least 5 minutes pass between two successive hits? (Provide your answer as a number between 0 and 1, rounded to 3 decimal places.)
The useful life of Johnson rods for use in a particular vehicle follows an exponential distribution with an average useful life of 5.2 years.You have a three-year warranty on your vehicle’s Johnson rod. What is the probability that the Johnson rod doesn’t fail before then? That is, what is the probability that its useful life doesn’t end before three years?b.If the vehicle manufacturer wants to limit the number of claims on the three-year warranty to 20%, what should the average useful life of the Johnson rod be?
When it is sunny, Joe's ice cream truck generates a profit of $547 per day, when it is not sunny, the profit is $250 per day, and when the truck is not out there selling ice cream, Joe loses $120 per day. Suppose 8% of a year Joe's truck is on vacation, and 86% of a year the truck is selling ice cream on sunny days, what is the expected daily profit the truck generates over a year? Enter answer as a decimal rounded to TWO digits after the decimal point.
Find the probability that a driver with at least one collision in the past year is a middle aged adult driver.
Ashley’s Internet service is terribly unreliable. In fact, on any given day, there is a 75% chance that her Internet connection will be lost at some point that day. What is the probability that her Internet service is not broken for five days in a row? Enter a fraction or round your answer to 4 decimal places, if necessary.
The amount of time spouses shop for anniversary cards can be modeled by an exponential distribution with the average amount of time equal to 42 minutes. What is the probability that a randomly selected spouse spends more than 12 but less than 104 minutes to shop for an anniversary card?
Ashley’s Internet service is terribly unreliable. In fact, on any given day, there is a 60% chance that her Internet connection will be lost at some point that day. What is the probability that her Internet service is not broken for seven days in a row? Enter a fraction or round your answer to 4 decimal places, if necessary.
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.
an epidemic starts when 4 people are infected with deadly virus. If the population of infected individuals grows at a constant rate of 28% per week, how many people will be infected after 8 weeks.
The probability that a new computer functions for over 10,000 hours is 0.8, the probability that it functions for over 20,000 hours is 0.4 and the probability that it functions for over 30,000 hours is 0.1. If a new computer is still working after 10,000 hours, what is the probability that i. its total life will exceed 20,000 hours;ii. its additional life will exceed 20,000 hours?
The amount of time spouses shop for anniversary cards can be modeled by an exponential distribution with the average amount of time equal to 48 minutes. What is the probability that a randomly selected spouse spends more than 12 but less than 88 minutes shopping for an anniversary card?

Recommended textbooks for you

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

SEE MORE TEXTBOOKS