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 minimum profit of $ on every 20-year-old female it insures for 1 month. B. The insurance company expects to make a maximum profit of $ on every 20-year-old female it insures for 1 year. O 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 profit of $ on every 20-year-old female it insures for 1 month.
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 minimum profit of $ on every 20-year-old female it insures for 1 month. B. The insurance company expects to make a maximum profit of $ on every 20-year-old female it insures for 1 year. O 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 profit of $ on every 20-year-old female it insures for 1 month.
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...
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Transcribed Image Text: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 minimum profit of $
on every 20-year-old female it insures for 1 month.
O B. The insurance company expects to make a maximum profit of $
on every 20-year-old female it insures for 1 year.
O 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 profit of $
on every 20-year-old female it insures for 1 month.
Transcribed Image Text:Suppose a life insurance company sells a $180,000 1-year term life insurance policy to a 20-year-old female for $320. 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.
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