There is a 0.9991 probability that a randomly selected 29-year-old male lives through the year. A life insurance company charges $152 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $110,000 as a death benefit. Complete parts (a) through (c) below. Question content area bottom Part 1 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 $negative 152−152. The value corresponding to not surviving the year is $109,848109,848. (Type integers or decimals. Do not round.) Part 2 b. If the 29-year-old male purchases the policy, what is his expected value? The expected value is $enter your response here. (Round to the nearest cent as needed.)
There is a 0.9991 probability that a randomly selected 29-year-old male lives through the year. A life insurance company charges $152 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $110,000 as a death benefit. Complete parts (a) through (c) below. Question content area bottom Part 1 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 $negative 152−152. The value corresponding to not surviving the year is $109,848109,848. (Type integers or decimals. Do not round.) Part 2 b. If the 29-year-old male purchases the policy, what is his expected value? The expected value is $enter your response here. (Round to the nearest cent as needed.)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
There is a
probability that a randomly selected
0.9991
29-year-old
male lives through the year. A life insurance company charges
$152
for insuring that the male will live through the year. If the male does not survive the year, the policy pays out
$110,000
as a death benefit. Complete parts (a) through (c) below.Question content area bottom
Part 1
a. From the perspective of the
events of surviving the year and not surviving?
29-year-old
male, what are the monetary values corresponding to the two The value corresponding to surviving the year is
$negative 152−152.
The value corresponding to not surviving the year is
$109,848109,848.
(Type integers or decimals. Do not round.)
Part 2
b. If the
29-year-old
male purchases the policy, what is his expected value?The expected value is
$enter your response here.
(Round to the nearest cent as needed.)
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