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7C- Expected Value Due: Name: Textbook problems: Section 7C, p. 504 - 508, QuickQuiz: #'s 4, 7; Exercises: #'s: 1, 3, 13, 15, 21, 23, 27, 31 1. An insurance policy sells for $600. Based on past data, and average of 1 in 50 policy holders will file a $5,000 claim, an average of 1 in 100 policyholders will file a $10,000 claim, and an average of 1 in 200 policyholders will file a $30,000 claim. (a) Find the expected value (to the company) per policy sold. (b) If the company sells 10,000 policies, what is the expected profit or loss? 2. When flipping a fair coin 4 times in a row, which outcome is more likely: HTHT or HHHH. Justify your answer. hp 5 6 8 9