An insurance policy on an electrical device pays a benefit of $4800 if the device fails during the first year. The amount of the benefit decreases by $800 each successive year until it reaches 0 . If the device has not failed by the beginning of any given year, the probability of failure during that year is 0.23. Find the expected benefit under this policy.

During a professor's office hours, students arrive, on average, every ten minutes. Assume that the distribution of the time between arrivals follows an exponential distribution. Suppose that a student has just left. Suppose that a student has just left. Only 25% of the time will the professor have to wait approximately how long or longer before the next student shows up?

If a 60 year-old buys a $1000 life insurance policy at a cost of $70 and has a probability of 0.921 of living to age 61, find the expectation of the policy until the person reaches 61. Round your answer to the nearest cent

A 38 -year-old woman purchases a $200,000 term life insurance policy for an annual payment of  $370. Based on a period life table for the U.S. government, the probability that she will survive the year is  0.999052. Find the expected value of the policy for the insurance company. Round to two decimal places for currency problems.

Suppose a person is looking for a one-year life insurance policy. They decide on a $232994 policy. This policy costs $291 per year. Suppose the probability the person dies in the year is 0.0006. Find the expected value of the policy for the insurance company. Give your answer as a decimal to at least two decimal places.

There is a 0.9984 probability that a randomly selected 28-year-old male lives through the year. A life insurance company charges $168 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $100,000 as a death benefit. Complete parts (a) through (c) below.

Suppose that the life-time of a certain printer follows an exponential distribution with mean 2 years. The manufacture of this printer offers 100% refund if the printer fails during the first year and 50% if it fails during the second year and none afterward. a. Evaluate the probability of full refund. A. 0.05 B. 0.24 C. 0.39 D. 0.47 E. 0.52 b. Assume that each printer costs $100.00. Determine the expected refund for each sold printer. A. 46 B. 51 C. 54 D. 61 E. 66

As the number of cars a person owns increases, so does the life expectancy of the person. What is the most likely explanation? Wealth is the common underlying cause Having more cars causes people to live longer. It is a coincidence

United Healthcare is setting plan prices for cancer survivors in the upcoming plan year. It is estimated that 26% of survivors of a particular cancer will redevelop cancer in the next year, and that the treatment will cost about $350,000. United would like to maintain an expected value of $550 per plan; how much do they need to charge each person in order to attain this expected value?

A company estimates that 0.1% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $300.If they offer a 2 year extended warranty for $21, what is the company's expected value of each warranty sold?$help