Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 85.4%. If BIC charges a premium of 5,533 silver coins and would pay a death benefit of 59,086 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative number.

-3901 silver coins (a loss)

Step-by-step explanation:

Probability of surviving the quest = 85.4% (Gain of 5,533 silver coins.)

If the insured were to die, the insurance company would pay a death benefit(incur a loss) of 59,086 silver coins.

Therefore:

The probability of not surviving the quest = 100%-85.4% =14.6%

Therefore, the expected value of this insurance policy to the insurance company

The expected value of this insurance policy to BIC is -3901 silver coins

this story was prepared by jim

mccullaugh in los angeles and

al stewart in new york.

new york the colossal success of "top gun" appears to have dramatically altered madison avenue's

perception of corporate sponsorship

of home video projects.

the paramount home video re- lease, featuring a 60- second diet

pepsi spot, was by no means the

first prerecorded video to carry an advertiser's plug, but it was the

first major theatrical release to do so. in the aftermath of the title's

success, paramount is widely ex- pected to ink a similar deal for

"crocodile dundee" or "star trek

iv" or both.

corporate america's new attraccds push british

recording sales

to 19% gain

london fueled by the compact

disk boom, the value of u.k. manu- facturer shipments of recordings

rose 19% in the 12 -month period ended march 1987, according to the

british phonographic industry.

total value of u.k. shipments for

the period was $755 million for all

configurations. (all value figures

are based on an exchange rate of

$1.68 to the pound sterling.)

cd sales totaled 10.7 million units

worth $121.3 million- compared

with 3.7 million units worth $39.5

million in the prior 12 months -and

accounted for two -thirds of the

overall gain in trade value. at present growth rates, says the bpi, cd

sales for calendar 1987 will reach 20

(continued on page 79)

step-by-step explanation:

idk

cfgghbjn bvcdftfghjnbgvfcdrtrfytgyuhuji