Suppose a life insurance company sells a $210,000 1-year term life insurance policy to a 20-year-old female for $310. According to the National Vital StatisticsReport, 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 S.(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 year.O B. The insurance company expects to make a profit of $on every 20-year-old female it insures for 1 month.O C. The insurance company expects to make a maximum 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.tia

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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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Suppose a life insurance company sells a $260,000 1-year term life insurance policy to a 20-year-old female for $280. 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.) A. The insurance company expects to make a maximum profit of $ B. The insurance company expects to make a profit of $ on every profit of $ C. The insurance company expects to make a minimum O D. The insurance company expects to make a profit of $ on every 20-year-old female it insures for 1 month. on every 20-year-old female it insures for 1 year. 20-year-old female it insures for 1 year. on every 20-year-old female…
Suppose there is a 0.9850 probability that you willnot lose your iPhone before the end of the year. Ifyou lose the phone, however, your insurance policywill pay you $500 to replace it. They don’t pay youanything if you don’t lose the phone. If the policycost you a one-time fee of $30, what is yourexpected value? What is the expected value fromthe insurance company’s perspective?
A construction company is planning to bid on a building contract. The bid costs the company $1300. the probability that the bid is accepted is 2/5. If the bid is accepted, the company will make $9,500 minus the cost of the bid. what is the expected value in this situation? Choose the statement below that best describes what this value means. A. In the long run, the construction company would expect to break even on average. B. In the long run, the construction company would expect to lose this amount on average per bid. C. In the long run, the construction company would expect to earn this amount on average per bid. D. None of the above.
The (simplified ) probability of losing this bet is 10/19 . If a player bets $16, find the player's expectation . (Round your answer to two decimal places.)
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
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)
If the expected value for a five dollar raffle ticket is $0.85, then there is a 85% chance that the ticket will win.
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. $).
The following are the rolls and monetary results to you from that roll in a board game. Roll Result Roll Result -15 8 -50 3 -40 9 -75 4 -200 10 -50 11 -60 -50 12 7 What's the approximate expected value of your turn (i.e., how much do you expect to pay out on the turn)? O a. - 50.42 Ob. - 151.25 Ос. - 25.25 O d. - 61.94 Ое.-75.50
Suppose you buy 1 ticket for $1 out of a lottery of 400 tickets with only 1 being the winning ticket. The prize for the one winning ticket is $100. What is your expected value in dollar? Round your value to 0.01 dollar. For example, -0.50 means losing half a dollar.
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…

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