a)You are considering a sales job that pays you on a commission basis or asalaried position that pays you RM50,000 per year. Historical data suggests thefollowing probability distribution for your commission income. Decide which jobhas the higher expected income.Commission Insurance Commission of Unit TrustAgentAgentProbability of OccurrenceRM15,000RM80,0000.15RM35,000RM38,0000.20RM48,000RM45,0000.35RM67,000RM15,0000.22RM80,000RM77,0000.18

Expected value is given by, E(X)= ΣXi*p(xi) Expected value for commission Insurance Agent, E(X1)=…

Answered: a) You are considering a sales job that…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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a. generate a simulation of the automobile collision claim payments to 10 payments? b. how many claims are paid? c. how much is the total amount paid to the policyholders?
Your insurance company has a policy to ensure personal property. Assume you have a laptop worth $2,400 and there's a 4% chance that the laptop will be lost or stolen during the next year. What would be a fair premium for the insurance? We are assuming that the insurance company earns no profit
Let X = {Email, In Person, Instant Message, Text Message}; P(Email) = 0.06 P(In Person) = 0.55 P(Instant Message) = 0.24 P(Text Message) = 0.15 Is this model a probability distribution? A. Yes. B. No. C. Maybe.
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Cost ($) Probability Labor Cost ($) Probability Transportation Cost ($) Probability 10 0.25 20 0.10 3 0.75 11 0.45 22 0.25 5 0.25 12 0.30 24 0.35 25 0.30 Compute profit per unit for the base-case, worst-case, and best-case scenarios. Construct a simulation model to estimate the mean profit per unit. Why is the simulation approach to risk analysis preferable to generating a variety of what-if scenarios? Management believes the project may not be sustainable if the profit per unit is less than $5. Use simulation to estimate the probability the profit per unit will be less than $5.
Amount of claim (to nearest $20,000) Probability $0 0.70 $20,000 0.17 $40,000 0.06 $60,000 0.04 $80,000 0.02 $100,000 0.01 A. Calculate the expected value? B. How much should the company charge as an average premium so that it breaks even on its claim costs? C. How much should the company charge to make a profit of $50 per policy?
I need help with this problem.
C. Hail Mary Shot - A Hail Mary shot is a shot thrown from a place far away from the basket. Since it is far, people say you need to pray or hail Mary to make it. Based on Piel's records, 2 out of 500 hail Mary shots made by all players in the league went in. To know the chances of Piel witnessing a hail Mary shot, distribution should be used with average rate of occurrence equal to With this, the probability that Piel will never witness a hail Mary shot in the game is
An insurance company estimates the probability of an earthquake in the next year to be 0.0013. The average damage done by an earthquake is estimated to be $60,000. If the company offers earthquake insurance for $100, what is their expected value of the policy?
An automobile insurance company has determined the probabilities for various claim amounts for drivers ages 16 through 21. Calculate the expected value to the nearest dollar.
Consider records of a company’s account balances. Twenty percent contain errors. Of those balance in errors, 80% are regarded as unusual values based on historical figures. Of all the account balances, 25% were unusual values. If the figure for a particular balance appears unusual on this basis, what is the probability that it is in error?

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