subject
Mathematics, 31.12.2020 19:00 chloegirl9796

There is a 0.9989 probability that a randomly selected 29-year-old male lives through the year. A life insurance company charges $197 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. Required:
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?
b. If the 29-year-old male purchases the policy, what is his expected value?
c. Can the insurance company expect to make a profit from many such policies? Why?

ansver
Answers: 3

Another question on Mathematics

question
Mathematics, 21.06.2019 20:20
Recall that the owner of a local health food store recently started a new ad campaign to attract more business and wants to know if average daily sales have increased. historically average daily sales were approximately $2,700. the upper bound of the 95% range of likely sample means for this one-sided test is approximately $2,843.44. if the owner took a random sample of forty-five days and found that daily average sales were now $2,984, what can she conclude at the 95% confidence level?
Answers: 1
question
Mathematics, 22.06.2019 00:30
Ineed to find the answer to number 2
Answers: 2
question
Mathematics, 22.06.2019 00:40
Calculate the annual effective interest rate of a 12 % nominal annual interest rate compound monthly
Answers: 1
question
Mathematics, 22.06.2019 03:00
The blue segment below is a diameter of o. what is the length of the radius of the circle?
Answers: 1
You know the right answer?
There is a 0.9989 probability that a randomly selected 29-year-old male lives through the year. A li...
Questions
question
Biology, 16.10.2020 16:01
question
SAT, 16.10.2020 16:01
question
Social Studies, 16.10.2020 16:01
Questions on the website: 13722363