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 80.6%.  If BIC charges a premium of 8,499 silver coins and would pay a death benefit of 52,297 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC?

There is a 0.9984 probability that a randomly selected 31-year-old male lives through the year. A life insurance company charges $159 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $80,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 31-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The value corresponding to surviving the year is $ The value corresponding to not surviving the year is $ (Type integers or decimals. Do not round.)

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?

Suppose 25% of workers in a market are willing to work for $55.000 and 75% of workers are willing to work for $63,000. The expected benetit of searching (interviewing) another worker equals S

There is a 0.9985 probability that a randomly selected 33 year old male lives through the year. A life insurance company charges $155 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. From the perspective of the 33 year old male, what are the monetary values corresponding to the two events of surviving the year and not surviving?

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 88.9%.  If BIC charges a premium of 8,240 silver coins and would pay a death benefit of 56,881 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative number. Phil Dunphy, a real estate agent, is considering whether he should list an unusual $303,402 house for sale.  If he lists it, he will need to spend $3,848 in advertising, staging, and fresh cookies.  The current owner has given Phil 6 months to sell the house.  If he sells it, he will receive a commission of $23,557.  If he is unable to sell the house, he will lose the listing and his expenses.  Phil estimates the probability of selling this house in 6 months to be 73%.  What is the expected…

2. If an insurance company issues a $200,000 five-year policy on a man whose probability of living for another five years is .994, what is the minimum that the expected cost to the company for this policy?

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 95.5%.  If BIC charges a premium of 9,900 silver coins and would pay a death benefit of 49,518 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative number.