Edit View History Bookmarks Window HelpOate Degrees | Job Training i St. Petersburg CollegeExpected Value16:39:003630 F2nadya santos: Attempt 2Question 3 (1 point)Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of thoseleading a quest to Moria. Based on past experience, the probability of surviving sucha quest is 89.3%. If BIC charges a premium of 9,665 silver coins and would pay adeath benefit of 95,687 silver coins if the insured were to die, what is the expectedvalue of this insurance policy to BIC?Question 4 (1 point)20 F3Round to the nearest silver coin as needed. If the expected value is a loss to BIC,enter your answer as a negative number.KYour Answer:Answer#3000000$F4mycourses.spcollege.eduSPC Dashboard-St. Petersburg CollegeD%5FSTMacBook Air<Y&7tvF7SPO Quiz: Expected Value - MGF1106 Mathematics for Liberal Arts▶11*U8100%1Sun 9:36 PM↓F10X4)BEО, Р

Given: The expected value is a weighted average of the value of every outcome, where the weights are…

Answered: Question 3 (1 point) Brandybuck…

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

See similar textbooks

Similar questions

Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 20-year-old female for $370.The probability that the female survives the year is 0.999464. Compute and interpret the expected value of this policy to the insurance company.
Suppose you pay $10 to roll a fair die with the understanding that you will get back $17 for rolling a 1 or a 2, nothing otherwise. What is your expected value? Round to the nearest cent. In your response do not use any words or symbols (i.e. $).
A company estimates that 0.6% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $400. If they offer a 2 year extended warranty for $42, what is the company's expected value of each warranty sold?
Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 20-year-old female for$240. The probability that the female survives the year is 0.999463. Compute and interpret the expected value of this policy to the insurance company.
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 88.9%. If BIC charges a premium of 8,240 silver coins and would pay a death benefit of 56,881 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 number. Phil Dunphy, a real estate agent, is considering whether he should list an unusual $303,402 house for sale. If he lists it, he will need to spend $3,848 in advertising, staging, and fresh cookies. The current owner has given Phil 6 months to sell the house. If he sells it, he will receive a commission of $23,557. If he is unable to sell the house, he will lose the listing and his expenses. Phil estimates the probability of selling this house in 6 months to be 73%. What is the expected…
Suppose a life insurance company sells a $280,000 one-year term life insurance policy to a 24-year-old female for $180. The probability that the female survives the year is 0.999522. Compute and interpret the expected value of this policy to the insurance company.
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 92.2%. If BIC charges a premium of 7,941 silver coins and would pay a death benefit of 42,081 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 number.
Solve this easy question
2. If an insurance company issues a $200,000 five-year policy on a man whose probability of living for another five years is .994, what is the minimum that the expected cost to the company for this policy?
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 95.5%. If BIC charges a premium of 9,900 silver coins and would pay a death benefit of 49,518 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 number.

Recommended textbooks for you

Algebra and Trigonometry (6th Edition)

Algebra

ISBN:

9780134463216

Author:

Robert F. Blitzer

Publisher:

PEARSON

Contemporary Abstract Algebra

Algebra

ISBN:

9781305657960

Author:

Joseph Gallian

Publisher:

Cengage Learning

Linear Algebra: A Modern Introduction

Algebra

ISBN:

9781285463247

Author:

David Poole

Publisher:

Cengage Learning

Algebra and Trigonometry (6th Edition)

Algebra

ISBN:

9780134463216

Author:

Robert F. Blitzer

Publisher:

PEARSON

Contemporary Abstract Algebra

Algebra

ISBN:

9781305657960

Author:

Joseph Gallian

Publisher:

Cengage Learning

Linear Algebra: A Modern Introduction

Algebra

ISBN:

9781285463247

Author:

David Poole

Publisher:

Cengage Learning

Algebra And Trigonometry (11th Edition)

Algebra

ISBN:

9780135163078

Author:

Michael Sullivan

Publisher:

PEARSON

Introduction to Linear Algebra, Fifth Edition

Algebra

ISBN:

9780980232776

Author:

Gilbert Strang

Publisher:

Wellesley-Cambridge Press

College Algebra (Collegiate Math)

Algebra

ISBN:

9780077836344

Author:

Julie Miller, Donna Gerken

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS