An investor is considering a $15,000 investment in a start-up company. She estimates that she has probability 0.15 of a $5,000 loss, probability 0.15 of a $10,000 loss, probability 0.15 of a $50,000 profit, and probability 0.55 of breaking even (a profit of $0). What is the expected value of the profit?

A 30-year-old woman wants to purchase a $300,000 one-year life insurance policy. What should the insurance company charge the woman for the policy if it wants an expected profit of $60? The company should charge her $ Age 20 30 40 50 Probability of Female Death 0.00070 0.00080 0.00095 0.00305 C

Q17. A single share of a stock was purchased prior to the company's release of its quarterly report. There is a 58% chance that the company will meet the quarterly sales expectations for its new product two weeks from now, and the value of the stock will go to $440. Otherwise, the company will not meet the quarterly sales expectations, and the value of the stock will go down to $100. What is the expected value of the stock two weeks from now? (Round to the nearest dollar. Do not enter $ sign.)

A certain model phone costs $599. The probability of the phone breaking over the course of a year is .07. What is the maximum amount you could pay for phone replacement insurance and still have a non-negative expected value on the policy? In other words, for what price or below would it be worth it to get the insurance?

A company estimates that 0.7% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $50.If they offer a 2 year extended warranty for $4, what is the company's expected value of each warranty sold?

Q3

Kramer wants to open a fruit stand. He figures his business can be really successful, moderately successful, barely successful, a failure, or a complete failure. Below is a table of all the possible outcomes, the estimated probability that each outcome will occur, and the profit Kramer will make for each out. What is the expected profit, in thousands, for this business? (Round your answer to the nearest two decimal places. Do not include the dollar sign ($) in your answer.) Outcome Really successful Moderately successful Failure P() 0.1 2 0.2 Complete failure 0.3 Barely successful ³1 5 0.2 8 Quarterly Profit ($, thousands) 0.0 2 30 16 -5 -25

A company estimates that 0.6% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $250. If they offer a 2 year extended warranty for $39, what is the company's expected value of each warranty sold?

A company estimates that 0.6% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $400. If they offer a 2 year extended warranty for $42, what is the company's expected value of each warranty sold?

A company estimates that 0.1% of their product will fail after th original warranty period but within 2 years of the purchase, with a replacement cost of $350. If they offer a 2 year warranty for $18 , what is the company's expected value of each warranty sold?