Question

An insurance company earns $530 for each individual who purchases its life insurance policy. If the individual dies, the insurance company must pay out $250,000. The probability that an individual will survive is 0.99862. Fill in the probability distribution with the correct values. Event | x = value to the company | P(x) individual survives | [ Select ] | [ Select ] individual dies | [ Select ] | [ Select ] What is the expected value of the policy to the company? [ Select ] What is the standard deviation of the value of the policy to the company? [ Select ]

          An insurance company earns $530 for each individual who purchases its life insurance policy. If the individual dies, the insurance company must pay out $250,000. The probability that an individual will survive is 0.99862. Fill in the probability distribution with the correct values.

Event | x = value to the company | P(x)
individual survives | [ Select ] | [ Select ]
individual dies | [ Select ] | [ Select ]

What is the expected value of the policy to the company? [ Select ]
What is the standard deviation of the value of the policy to the company? [ Select ]

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An insurance company earns 530 for each individual who purchases its life insurance policy. If the individual dies, the insurance company must pay out250,000. The probability that an individual will survive is 0.99862. Fill in the probability distribution with the correct values.

Event | x = value to the company | P(x)
individual survives | [ Select ] | [ Select ]
individual dies | [ Select ] | [ Select ]

What is the expected value of the policy to the company? [ Select ]
What is the standard deviation of the value of the policy to the company? [ Select ]

Added by Monica B.

Elementary Statistics a Step by Step Approach

Allan G. Bluman 9th Edition

Instant Answer

Solved by Expert Federico Castro

06/19/2022

Step 1

Step 1: Calculate the value to the company if an individual dies** Given: - Value earned by the company if an individual purchases the policy: $530 - Amount the company must pay out if the individual dies: $250,000 Calculate: $530 - $250,000 = -$249,470 ** Show more…

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An insurance company earns $530 for each individual who purchases its life insurance policy. If the individual dies, the insurance company must pay out $250,000. The probability that an individual will survive is 0.99862. Fill in the probability distribution with the correct values. Event | x = value to the company | P(x) individual survives | [ Select ] | [ Select ] individual dies | [ Select ] | [ Select ] What is the expected value of the policy to the company? [ Select ] What is the standard deviation of the value of the policy to the company? [ Select ]

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