# PROBABILITY

posted by .

FIND THE EXPECTED PROFIT OR LOSS VALUE FOR 100,000 POLICIES:
AN INSURANCE POLICY SELLS FOR \$625. BASED ON PAST DATA, AN VERRAGE OF 1 IN 100 POLICY HOLDESWILL FILE \$8000 claim, nd average of 1 in 250 policholders will file a \$10,00 claim,and an average o 1 in 500 policy holders wil filea \$30,000 clam. lst the appropriae forula, then compute your answer.

## Respond to this Question

 First Name School Subject Your Answer

## Similar Questions

1. ### statistical reasioning

An actuary at an insurance company estimates from exsiting data that on a \$1000 policy an average 1 and 100 policyholders will file a 20000 claim. in average of 1 in 200 policyolders will file a 50000 claim in average 1 in 500 policyholders …
2. ### math

An actuary at an insurance company estimates from exsiting data that on a \$1000 policy an average 1 and 100 policyholders will file a 20000 claim. in average of 1 in 200 policyolders will file a 50000 claim in average 1 in 500 policyholders …
3. ### Statistics

A life insurance company sells a term insurance policy to a 21-year-old male that pays \$100,000 if the insured dies within the next 5 years. The probability that a randomly chosen male will die each year can be found in mortality tables. …
4. ### statistics

This table shows claims and their probablity for an insurance company. AMOUNT OF CLAIM PROBABILITY \$0 0.65 \$50,000 0.25 \$100,000 0.06 \$150,000 0.02 \$200,000 0.01 \$250,000 0.01 1. Calculate the expected value?
5. ### Math-Stats

An insurance company charges its policy holders an annual premium of \$200 for the following type of injury insurance policy. If the policy holder suffers a "major injury" resulting in lengthy hospitalization, the company will pay out …
6. ### statistics

An insurance company charges its policy holders an annual premium of \$200 for the following type of injury insurance policy. If the policy holder suffers a "major injury" resulting in lengthy hospitalization, the company will pay out …
7. ### Math

It is estimated that are 21 deaths for every 10 million people who use airplanes. A company that sells flight insurance provides 100,000 in case of death in a plane crash. A policy can be purchased for \$1. Calculate the expected value …
8. ### Precalculus

Records from the buzz sawmill show that workers have 0.03 probability of losing a leg and a 0.04 probability of losing an arm in any one year. Armand leg casualty insurance company plans to offer insurance policies for the workers. …
9. ### Managerial Economics

Suppose your company is considering three health insurance policies. The first policy requires no tests and covers all preexisting illnesses. The second policy requires that all covered employees test negative for the HIV virus. The …
10. ### Math

You purchase a life insurance premium for​ \$250 annually. The probability of a claim is 0.001 for your age bracket. The policy is worth​ \$50,000. What is your​ gain/loss that​ year?

More Similar Questions