Question

1. A company sells trip insurance to people going on a vacation. The charge is $75 for a trip. The company estimates that the probability of a successful claim being filed is 4.2% and this leads to an average payout of $560. What is their expectation for each policy sold? (Note: when there is a payout, the company pays $560 on an average, but keeps the $75) Enter your answer rounded to the nearest cent. (E.g. $50.768 would be entered as 50.77) 2. You play a game where you bet $10 and pick a card from a standard deck of 52. If it is a spade, you get back only $5 (i.e. you lose $5) while if it is a diamond, you get back $27 (i.e you win $17). If it is anything else, you lose the entire $10. What is your expectation for the bet? (Hint: your answer will be a negative whole number. For instance, if it is negative 4 dollars, enter it as -4) 3. In this segment, the player Joe has 4 sums of money left on the board, which you can see listed on the board in some shots. (NOTE: The sum on the top, $183,000 is NOT one of these - rather, that is the deal the banker has offered Joe to end the game.) What is Joe's expectation at this stage of the game (i.e. when 4 unopened briefcases, including his own, are left)? 4. In the segment, the banker makes Joe an offer and Joe makes a counter-offer. The banker refuses this counter-offer. Which of the following statements are true according to the laws of probability and expectation? Statement A: Joe is right to reject the banker's offer because it is too low. Statement B: The banker is right to refuse Joe's counter-offer because it is too high.

          1. A company sells trip insurance to people going on a vacation.
The charge is $75 for a trip. The company estimates that the
probability of a successful claim being filed is 4.2% and this
leads to an average payout of $560. What is their expectation for
each policy sold? (Note: when there is a payout, the company pays
$560 on an average, but keeps the $75)
Enter your answer rounded to the nearest cent. (E.g. $50.768
would be entered as 50.77)
2. You play a game where you bet $10 and pick a card from a
standard deck of 52. If it is a spade, you get back only $5 (i.e.
you lose $5) while if it is a diamond, you get back $27 (i.e you
win $17). If it is anything else, you lose the entire $10. What is
your expectation for the bet? (Hint: your answer will be a negative
whole number. For instance, if it is negative 4 dollars, enter it
as -4)
3. In this segment, the player Joe has 4 sums of money left
on the board, which you can see listed on the board in some shots.
(NOTE: The sum on the top, $183,000 is NOT one of these - rather,
that is the deal the banker has offered Joe to end the game.) What
is Joe's expectation at this stage of the game (i.e. when 4
unopened briefcases, including his own, are left)?  
4. In the segment, the banker makes Joe an offer and Joe
makes a counter-offer. The banker refuses this counter-offer. Which
of the following statements are true according to the laws of
probability and expectation?
Statement A: Joe is right to reject the banker's offer because
it is too low.
Statement B: The banker is right to refuse Joe's counter-offer
because it is too high.

Added by Tyler M.

Question

Please give Ace some feedback