There is a 0.9984 probability that a randomly selected 29-year-old male lives through the year. A life insurance company charges $162 for insuring that the male will live through the year. If the male does not survivethe year, the policy pays out $90,000 as a death benefit. Complete parts (a) through (c) below.a. From the perspective of the 29-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 29-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?because the insurance company expects to make an average profit of $on every 29-year-old male it insures for 1 year.(Round to the nearest cent as needed.)MacBook吕0000000F7F6F5F3F4escF1F2&232$712345YP

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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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There is a 0.9985 probability that a randomly selected 31-year-old male lives through the year. A life insurance company charges $189 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $80,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 31-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 31-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? because the insurance company expects to make an average profit of $ on every 31-year-old male it insures for 1 year. (Round to the nearest cent as needed.)
Consider the following chart, which shows Bitcoin values during October 1, 2020-October 1, 2021.+ Bitcoin 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1-Oct-20 Date 1-Nov-20 13,800 Price ($) Date 29,000 19,400 Price ($) Date Marked are the following points on the chart. 1-Dec-20 ܐ 1-Jan-21 1-Feb-21 45,700 32,500 1-Oct-21 61,400 13,800 19,400 58,900 1-Mar-21 32,600 1-Apr-21 1-Jun-21 58,900 52,100 1-May-21 1-Jul-21 1-Jun-21 47,000 41,500 1-Oct-20 1-Nov-20 1-Dec-20 1-Jan-21 1-Feb-21 1-Mar-21 29,000 32,500 45,700 58,900 1-Apr-21 1-May-21 1-Jul-21 1-Aug-21 1-Sep-21 32,600 52,100 58,900 41,500 47,000 43,400 43,400 1-Sep-21 61,400 1-Aug-21 1-Oct-21 Price ($) Calculate to the nearest 0.01% your annual percentage return (assuming monthly compounding) if you had bought Bitcoin on December 1, 2020 and then sold it on June 1, 2021.
There is a 0.9986 probability that a randomly selected 31-year-old male lives through the year. A life insurance company charges $175 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. Complete parts (a) through (c) below. a. From the perspective of the 31-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 $ - 175 The value corresponding to not surviving the year is $ 99,825 (Type integers or decimals. Do not round.) b. If the 31-year-old male purchases the policy, what is his expected value? The expected value is $. (Round to the nearest cent as needed.)
A real estate investor has the opportunity to purchase land currently zoned as residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are shown in the following payoff table: State of Nature Rezoning Approved Rezoning Not Approved Decision Alternative s1 s2 Purchase, d1 610 -190 Do not purchase, d2 0 0 (a) If the probability that the rezoning will be approved is 0.5, what decision is recommended? Recommended Decision: What is the expected profit? Enter your answer in dollars. For example, an answer of $200 thousands should be entered as 200,000. $ (b) The investor can purchase an option to buy the land. Under the option, the…
A paper included analysis of data from a national sample of 1,000 Americans. One question on the survey is given below. "You owe $3,000 on your credit card. You pay a minimum payment of $30 each month. At an Annual Percentage Rate of 12% (or 1% per month), how many years would it take to eliminate your credit card debt if you made no additional charges?" Answer options for this question were: (a) less than 5 years; (b) between 5 and 10 years; (c) between 10 and 15 years; (d) never-you will continue to be in debt; (e) don't know; and (f) prefer not to answer. A USE SALT (a) Only 355 of the 1,000 respondents chose the correct answer of "never." Assume that the sample is representative of adult Americans. Is there convincing evidence that the proportion of adult Americans who can answer this question correctly is less than 0.40 (40%)? Use the five-step process for hypothesis testing (HMC3) described in this section and a = 0.05 to test the appropriate hypotheses. (Hint: See Example…
There is a 0.9986 probability that a randomly selected 27-year-old male lives through the year. A life insurance company charges $157 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $80,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 27-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 $nothing. The value corresponding to not surviving the year is $nothing. (Type integers or decimals. Do not round.) b. If the 27-year-old male purchases the policy, what is his expected value? The expected value is $nothing. (Round to the nearest cent as needed.) c. Can the insurance company expect to make a profit from many such policies? Why? because the insurance company expects to make an average profit of $nothing on every 27-year-old male it…

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