You purchase a $100,000 life insurance policy for a $300 premium each year. If the probability of living is 0.999, find the expected value for the insurance company.

The expected value for the insurance company is $200

Step-by-step explanation:

In order to calculate the expected value for the insurance company we would have to make the following calculation:

expected value for the insurance company=expected value live+expected value die

expected value live=Net gain*probability of living

expected value live=$300*0.999=$299.70

expected value die=Net gain*probability of die

expected value die=(-$100,000 + $300)*0.001

expected value die=$-99.70

Therefore, expected value for the insurance company=$299.70-$99.70

expected value for the insurance company=$200

The expected value for the insurance company is $200

greater than one

step-by-step explanation:

delaney would like to make a 5lb nut mixture that is 60% peanuts and 40% almonds.

she has several pounds of peanuts and several pounds of a mixture that is 20% peanuts and 80% almonds.

let 'p' represent the number of pounds of peanuts needed to make the new mixture, and  

let 'm' represent the number of pounds of the 80% almond-20% peanut mixture.

:

p + m = 5

therefore

m = (5-p)

write an equation based on the percent of peanuts

1p + .2m = .6(5)

replace m with (5-p)

p + .2(5-p) = .6(5)

p + 1 - .2p = 3

p - .2p = 3 - 1

.8p = 2

p = 2/.8

p = 2.5 lbs of peanuts required

then

5 - 2.5 = 2.5 lbs of the peanut/almond mixture required

:

a) what is the system that models this situation?

p + m = 5

1p + .2m = .6(5)