# Question: GESCO Insurance Company charges a 350 premium per annum for

GESCO Insurance Company charges a $350 premium per annum for a $100,000 life insurance policy for a 40-year-old female. The probability that a 40-year-old female will die within 1 year is .002.

a. Let x be a random variable that denotes the gain of the company for next year from a $100,000 life insurance policy sold to a 40-year-old female. Write the probability distribution of x.

b. Find the mean and standard deviation of the probability distribution of part a. Give a brief interpretation of the value of the mean.

a. Let x be a random variable that denotes the gain of the company for next year from a $100,000 life insurance policy sold to a 40-year-old female. Write the probability distribution of x.

b. Find the mean and standard deviation of the probability distribution of part a. Give a brief interpretation of the value of the mean.

**View Solution:**## Answer to relevant Questions

Spoke Weaving Corporation has eight weaving machines of the same kind and of the same age. The probability is .04 that any weaving machine will break down at any time. Find the probability that at any given time a. All eight ...Twenty corporations were asked whether or not they provide retirement benefits to their employees. Fourteen of the corporations said they do provide retirement benefits to their employees, and 6 said they do not. Five ...The Red Cross honors and recognizes its best volunteers from time to time. One of the Red Cross offices has received 12 nominations for the next group of 4 volunteers to be recognized. Eight of these 12 nominated volunteers ...The amount of time taken by a bank teller to serve a randomly selected customer has a normal distribution with a mean of 2 minutes and a standard deviation of .5 minute. a. What is the probability that both of two randomly ...Find the area under the standard normal curve a. From z = 0 to z = 2.34 b. Between z = 0 and z = –2.58 c. From z = .84 to z = 1.95 d. Between z = –.57 and z = –2.49 e. Between z = 2.15 and z = 1.87Post your question