Question

A 20-year-old woman takes out a $12,000 one-year life insurance policy that costs $110. Mortality tables indicate that the probability that a 20-year-old women will die within a year is 0.006. (Note: the policy is for one year) Fill in the values for a probability model for the company’s profit on a 20-year-old woman’s policy.

Outcome x P(X=x)

She lives the whole year

She dies within the year 0.006

Answer #1

P(She lives the whole year) + P(She dies within the year) = Total probability

Therefore, P(She lives the whole year) = Total probability - P(She dies within the year) = 1 - 0.006 = 0.994

X = company's profit = $110 if She lives the whole year

and X = company's profit = 110 - 12000 = -11890 dollar if She dies within the year

So the probability model for the company’s profit on a 20-year-old woman’s policy is as follows:

Outcome | x | P(X=x) |

She lives the whole year | 110 | 0.994 |

She dies within the year | -11890 | 0.006 |

So,

And
insurance company sales a one year term life insurance policy to an
80-year-old woman. The woman pays a premium of $1000. If she dies
within one year the company will pay $20,000 to her beneficiary.
According to the US centers for disease control and prevention the
probability that a 80-year-old woman will be a live one year later
is 0.9516. But X be the profit made by the insurance company. Found
the probability distribution in the ass but the...

a 30 -year old woman purchases a $200,000 term life insurance
policy for an annual payment of $460. Based on a period life table
for the U.S. Government, the probability that she will survive the
year is 0.999051. Find the expected value of the policy for the
insurance company. Round to two decimal places for currency
problems.

Suppose a life insurance company sells a $190,000 one-year
term life insurance policy to a 20-year-old female for $330. The
probability that the female survives the year is 0.999502. Compute
and interpret the expected value of this policy to the insurance
company.

6. A 35-year-old woman purchases a $100,000 term life insurance
policy for an annual payment of $360. Based on a period life table
for the U.S. government, the probability that she will survive the
year is 0.999057. Find the expected value of the policy for the
insurance company. need a step by step description via
excel

A 20-year-old female purchases a 1-year life insurance policy
worth $250,000. The insurance company determines that she will
survive the policy period with probability 0.9995.
(a) If the premium for the policy is $300, what is the expected
profit for the company?
(b) At what value should the insurance company set its premium
so its expected profit will be $250 per policy for 20-year-old
females?

MATH220 Lab04 Due Date: See ACE Excel File: Lab2204-182.xlsx 1
Question 1: (by hand) A retail establishment accepts either the
American Express card or the VISA credit card. A total of 30% of
its customers carry an American Express card, 70% carry a VISA
card, and 20% carry both. a) Find the probability that a randomly
selected customer carries at least one of the two credit cards. i)
Draw a Venn diagram and shade the region corresponding to at least...

Kathy, a 20-year-old woman, awakens one morning to a tingling,
numb sensation covering both of her feet. This has happened to her
a number of times throughout the year. In the past, when
experiencing this sensation, within a couple of days to a week the
numbness would subside, and so she is not too concerned. About a
week later, she notices that the numbness and tingling not only
persists, but has also spread up to her knees. Again, she ignores...

C.O. is a 43-year-old woman who noted a nonpruritic nodular
rash on her neck and chest about 6 weeks ago. The rash became
generalized, spreading to her head, abdomen, and arms, and was
accompanied by polyarticular joint pain and back pain. About 2
weeks ago, she experienced three episodes of epistaxis in 1 day.
Over the past week, her gums became swollen and tender and she was
severely fatigued. Because of the progression of symptoms, she
sought medical attention. Lab...

C.O. is a 43-year-old woman who noted a nonpruritic nodular
rash on her neck and chest about 6 weeks ago. The rash became
generalized, spreading to her head, abdomen, and arms, and was
accompanied by polyarticular joint pain and back pain. About 2
weeks ago, she experienced three episodes of epistaxis in 1 day.
Over the past week, her gums became swollen and tender and she was
severely fatigued. Because of the progression of symptoms, she
sought medical attention. Lab...

Sarah, a forty-nine-year-old Anglo woman, visits her physician
complaining of weight loss, sweating, listlessness, and flu-like
symptoms (fever, headache, scratchy throat, generalized body ache).
After checking her history the physician notes that Sarah is
married, has four children, and no previous history of chronic
illness. Her weight has decreased 15 pounds over the past three
months and she presents with a temperature of 101 degrees F, a
slightly elevated pulse (85 beats per minute), normal blood
pressure (112/78 mm Hg),...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 15 minutes ago

asked 15 minutes ago

asked 18 minutes ago

asked 23 minutes ago

asked 32 minutes ago

asked 42 minutes ago

asked 47 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago