Statistics
posted by Katja .
A life insurance company sells a term insurance policy to a 21yearold 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. The company collects a premium of $250 each year as payment for the insurance. The amount X that the company earns on this policy is $250 per year, less the $100,000 that it must pay if the insured dies. Here is the distribution of X. Fill in the missing probability in the table and calculate the mean profit μX
Respond to this Question
Similar Questions

Statistics
1) Laura McCarthy, the owner of Riverside Bakery, has been approached by insurance underwriters trying to convince her to purchase flood insurance. According to local meterologist, there is a 0.01 probability that the river will flood … 
math
A 28yearold man pays $192 for a oneyear life insurance policy with coverage of $150,000. If the probability that he will live through the year is 0.9989, what is the expected value for the insurance policy? 
math
Which of the following are true of ordinary wholelife insurance policies? 
statistic
Jim has a 5yearold car in reasonably good condition. He wants to take out a $30,000 term (that is, accident benefit) car insurance policy until the car is 10 years old. Assume that the probability of a car having an accident in the … 
statistics
The probability that a 30year old white male will live another year is .99842. What premium would an insurance company charge to break even on a 1year $1 million dollar term life insurance policy? 
Probability
A 30 year old can buy $25,000 life insurance for $15/month. If the probability that the 30 year old will die is 0.14% find the insurance companies expected profit for the policy. (I want this in terms of their annual expectationnot … 
math
A 30 year old can buy $25,000 life insurance for $15/month. If the probability that the 30 year old will die is 0.14% find the insurance companies expected profit for the policy. (I want this in terms of their annual expectationnot … 
Stor
It would be quite risky for you to insure the life of a 25yearold friend . There is a high probability that your friend would live and you would gain $875 in premiums. But if he were to die, you would lose almost $100,000. Explain … 
Consumer Math: Insurance
Choose as many answers as apply. Which of the following statements are true of ordinary wholelife insurance policies? 
Statistics
The probability that a randomly selected twoyearold male stinkbug will live to be three years old is .59963 what is the probability that to randomly selected twoyearold male stinkbugs will live to be three years old?