Mathematics, 31.07.2020 01:01, tainy98
An insurance company charges a 21-year-old male a premium of $250 for a one-year $50,000 life insurance policy. A 21-year-old male has a 0.9985 probability of living for a year.
a. From the perspective of a 21-year-old male (or his estate), what are the values of the two different outcomes?
The value if he lives is
The value if he dies is
dollars.
dollars
b. What is the expected value for a 21-year-old male who buys the insurance?
The expected value is dollars.
c. What would be the cost of the insurance if the company just breaks even in the long run with many such policies), instead of making a profit?
dollars
d. Given that the expected value
negative (so the insurance company can make a profit), why should a 21-year-old male or anyone else purchase life insurance?
A person who buys a one-year policy will expect to make a profit.
Insuring the financial security of loved ones compensates for the negative expected value.
va
ya
(0,0)
More
Click to select your answer(s).
W
29
Answers: 1
Mathematics, 21.06.2019 20:00, ZaneKun
Need ! the total ticket sales for a high school basketball game were $2,260. the ticket price for students were $2.25 less than the adult ticket price. the number of adult tickets sold was 230, and the number of student tickets sold was 180. what was the price of an adult ticket?
Answers: 1
Mathematics, 21.06.2019 20:50, jahootey2798
You need to solve a system of equations. you decide to use the elimination method. which of these is not allowed? 3x - 2y = 7 3x + 4y = 17 equation 1 equation 2
Answers: 1
Mathematics, 22.06.2019 01:10, calmicaela12s
A3cmĂ—3cm\greend{3\,\text{cm} \times 3\,\text{cm}} 3cmĂ—3cm start color greend, 3, space, c, m, times, 3, space, c, m, end color greend rectangle sits inside a circle with radius of 4cm\blued{4\,\text{cm}} 4cm start color blued, 4, space, c, m, end color blued . what is the area of the shaded region? round your final answer to the nearest hundredth.
Answers: 3
An insurance company charges a 21-year-old male a premium of $250 for a one-year $50,000 life insura...
History, 04.11.2021 16:10