A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria.  Based on past experience, the probability of surviving such a quest is 80.5%.  If BIC charges a premium of 5,237 silver coins and would pay a death benefit of 43,704 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC?

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