There is a 0.9983probability that a randomly selected 28-year-old male lives through the year. A life insurance company charges $198 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out$110 , 110,000 as a death benefit. From the perspective of the 28-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The value corresponding to surviving the year is $_. The value corresponding to not surviving the year is $_. (Type integers or decimals. Do not round.) b. If the 28-year-old male purchases the policy, what is his expected value? The expected value is $_. (Round to the nearest cent as needed.) c. Can the insurance company expect to make a profit from many such policies? Why? ( no or yes) ,because the insurance company expects to make an average profit of $_ on every 28-year-old male it insures for 1 year. (Round to the nearest cent as needed.)
Compound Probability
Compound probability can be defined as the probability of the two events which are independent. It can be defined as the multiplication of the probability of two events that are not dependent.
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Probability theory is a branch of mathematics that deals with the subject of probability. Although there are many different concepts of probability, probability theory expresses the definition mathematically through a series of axioms. Usually, these axioms express probability in terms of a probability space, which assigns a measure with values ranging from 0 to 1 to a set of outcomes known as the sample space. An event is a subset of these outcomes that is described.
Conditional Probability
By definition, the term probability is expressed as a part of mathematics where the chance of an event that may either occur or not is evaluated and expressed in numerical terms. The range of the value within which probability can be expressed is between 0 and 1. The higher the chance of an event occurring, the closer is its value to be 1. If the probability of an event is 1, it means that the event will happen under all considered circumstances. Similarly, if the probability is exactly 0, then no matter the situation, the event will never occur.
male lives through the year. A life insurance company charges $198
for insuring that the male will live through the year. If the male does not survive the year, the policy pays out$110 , 110,000 as a death benefit.
male purchases the policy, what is his expected value?
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