Suppose a life insurance company sells a $170,000 1-year term life insurance policy to a 20-year-old female for $260. According to the NationalVital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. OCompute and interpret the expected value of thispolicy 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 completeyour choice.(Round to the nearest cent as needed.)A. The insurance company expects to make a maximum profit of $on every 20-year-old female it insures for 1 year.B. The insurance company expects to make a 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.O D. The insurance company expects to make a minimum profit of $on every 20-year-old female it insures for 1 month.

From the provided information, The probability that the female survives = 0.999544 If female…

Answered: Suppose a life insurance company sells…

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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1. An investor is considering a $25,000 investment in a start-up company. She estimates that she has probability 0.05 of a $15,000loss, probability 0.15 of a $20,000 loss, probability 0.35 of a$35,000 profit, and probability 0.45 of breaking even (a profit of $0). What is the expected value of the profit? Select one: A. $16,000 B. $0 C. $19,750 D. $8500 note:-please send me answer in typed form strictly prohibited hand written solution
The probability that a 29-year old female will die within 1-year is 0.000594. If an insurance company sells a 1-year, $50000 life insurance policy to a 29-year old female for $77, what is the expected value for the insurance company? Round your answer to the nearest cent.
is the following is an example of an empirical probability or a theoretical probability? Joe tosses a coin 10 times and gets 4 heads. He concludes that the probability of getting a head is 4/10=0.4 or 40%. A. Empirical B. Theoretical
A raffle is being held at a benefit concert. The prizes are awarded as follows: 1 grand prize of $9,400.00, 3 prizes of $730.00, 6 prize of $76.00, and 10 prizes of $25.00. Suppose 13500 raffle tickets are sold, if you buy one ticket for $2.00 then what is your expected value for this raffle? (Note: Include dollar signs in your answer)
Suppose a life insurance company sells a $150,000 1-year term life insurance policy to a 20-year-old female for $300. 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.) O 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 profit of $ on every 20-year-old female it insures for 1 year. C. The insurance company expects to make a maximum profit of $ every year-old female it insures for 1 year. D. The insurance company expects to make a minimum profit of $ on every 20-year-old female…
A company estimates that 0.7% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $50.If they offer a 2 year extended warranty for $4, what is the company's expected value of each warranty sold?
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. $).
Suppose a life insurance company sells a $160,000 1-year term life insurance policy to a 20-year-old female for $330. According to the National Vital Statistics Report, 58(21), the probability that th 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.) OA. The insurance company expects to make a profit of $ OB. The insurance company expects to make a maximum profit of $ OC. The insurance company expects to make a minimum profit of $ OD. The insurance company expects to make a profit of $ ! 1 Q @ 2 W 3 E $ 4 R on every 20-year-old female it insures for 1 year. on every 20-year-old female it insures for 1 year. on every 20-year-old female it insures for 1 month. on…
Jim has a 5-year-old car in reasonably good condition. He wants to take out a $20,000 term (that is, accident benefit) car insurance policy until the car is 10 years old. Assume that the probability of a car having an accident in the year in which it is x years old is as follows: x = age 5 6 7 8 9 P(accident) 0.01182 0.01282 0.01386 0.01513 0.01602 Jim is applying to a car insurance company for his car insurance policy. If the car insurance company wants to make a profit of $700 above the expected total losses of $1393, how much should it charge for the policy? Group of answer choices $701 $693 $713 $703 $705
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.

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