Suppose there is a 0.9986 probability that a randomly selected 30-year-old male will live to the end of the year. A life insurance company charges $161 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $100,000 as a death benefit. If a 30- year-old male purchases the policy, what is his expected value?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Suppose there is a 0.9986 probability that a
randomly selected 30-year-old male will live to the
end of the year. A life insurance company charges
$161 for insuring that the male will live through the
year. If the male does not survive the year, the
policy pays out $100,000 as a death benefit. If a 30-
year-old male purchases the policy, what is his
expected value?
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