There is a 0.9988 probability that a randomly selected 31-year-old male lives through the year. A life insurance company charges $195 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $110,000 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.) b. If the 31-year-old male purchases the policy, what is his expected value? The expected value is $ (Round to the nearest cent as needed.) c. Can the insurance company expect to make a profit from many such policies? Why?

There is a 0.9988 probability that a randomly selected 31-year-old male lives through the year. A life insurance company charges $195 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $110,000 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.) b. If the 31-year-old male purchases the policy, what is his expected value? The expected value is $ (Round to the nearest cent as needed.) c. Can the insurance company expect to make a profit from many such policies? Why?

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MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Concept explainers

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

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Question

There is a 0.9988 probability that a randomly selected 31-year-old male lives through the year. A life insurance
company charges $195 for insuring that the male will live through the year. If the male does not survive the year, the
policy pays out $110,000 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.)
b. If the 31-year-old male purchases the policy, what is his expected value?
The expected value is $
(Round to the nearest cent as needed.)
c. Can the insurance company expect to make a profit from many such policies? Why?
because the insurance company expects to make an average profit of $
on every 31-year-old male it
insures for 1 year.
(Round to the nearest cent as needed.)

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