Question: A life insurance company sells a 100 000 one year term life
A life insurance company sells a $100,000 one-year term life insurance policy to a 35-year-old male for $200. According to the National Vital Statistics Report, 56(9), the probability the male survives the year is 0.998725. Compute and interpret the expected value of this policy to the life insurance company.
Relevant QuestionsState the criteria that must be met for an experiment to be a binomial experiment. Determine whether the random variable is discrete or continuous. In each case, state the possible values of the random variable. (a) The number of light bulbs that burn out in the next week in a room with 20 bulbs. (b) The ...Determine the required value of the missing probability to make the distribution a discrete probability distribution. x .... P(x) 3 .... 0.4 4 .... ? 5 .... 0.1 6 .... 0.2 Toss is a popular application for smart phones. The goal of the game is to toss crumbled paper into a trash can while accounting for wind from a fan. The following data represent the ratings (on a scale from 1 to 5) with 1 ...In the Cash Five Lottery in Connecticut, a player pays $1 for a single ticket with ﬁve numbers. Five balls numbered 1 through 35 are randomly chosen from a bin without replacement. If all ﬁve numbers on a player’s ...
Post your question