Question

And insurance company sales a one year term life insurance policy to an 80-year-old woman. The...

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 value of the profit
Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A 20-year-old woman takes out a $12,000 one-year life insurance policy that costs $110. Mortality tables...
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
A $200,000 life insurance term policy costs $150 for 5 years of coverage for a 30...
A $200,000 life insurance term policy costs $150 for 5 years of coverage for a 30 year old male. If the male dies during those 5 years, the insurance company pays their family $200,000. If he survives those 5 years, the insurance company will have collected the $150 premium. The insurance company knows a 30 year old has a 0.000176 probability of dying over 5 years. What is the expected profit for the insurance company on this policy?
1.A man purchased a $21,000, 1-year term-life insurance policy for $350. Assuming that the probability that...
1.A man purchased a $21,000, 1-year term-life insurance policy for $350. Assuming that the probability that he will live for another year is 0.985, find the company's expected net gain. 2.A man wishes to purchase a life insurance policy that will pay the beneficiary $20,000 in the event that the man's death occurs during the next year. Using life insurance tables, he determines that the probability that he will live another year is 0.95. What is the minimum amount that...
A 20-year-old female purchases a 1-year life insurance policy worth $250,000. The insurance company determines that...
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?
a 30 -year old woman purchases a $200,000 term life insurance policy for an annual payment...
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...
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...
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 customer buys a $250,000 life insurance policy with an annual premium of $600. Her probability...
A customer buys a $250,000 life insurance policy with an annual premium of $600. Her probability of dying during the year is 0.002. If she dies, the insurance company will have to give her beneficiary $250,000. Calculate the insurance company’s expected value for this policy. And what does the expected value represent?
A man wishes to purchase a life insurance policy that will pay the beneficiary $30,000 in...
A man wishes to purchase a life insurance policy that will pay the beneficiary $30,000 in the event that the man's death occurs during the next year. Using life insurance tables, he determines that the probability that he will live another year is 0.92. What is the minimum amount that he can expect to pay for his premium? Hint: The minimum premium occurs when the insurance company's expected profit is zero.
An insurance company sells a $12,000, five-year term life insurance policy to an individual for $640....
An insurance company sells a $12,000, five-year term life insurance policy to an individual for $640. Find the expected return for the company if the probability the individual will live for the next five years is 0.98. (Round your answer to the nearest cent.)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT