Life Insurance: A life insurance company wants to estimate the probability that a 40-year-old male will...

Life Insurance: A life insurance company wants to estimate the probability that a 40-year-old male will live through the next year. In a sample of 7000 such men from prior years, 6993 lived through the year. Use the relative frequency approximation to estimate the probability that a randomly selected 40-year-old male will live through the next year. Round your answer to 4 decimal places.
P(he lives through the year) =????

Expert Solution

orchestra answered 2 years ago

An insurance company wants to offer a 3 year term insurance contract to a male aged...

An insurance company wants to offer a 3 year term insurance contract to a male aged 70. This contract pays $1M at the end of the year of death if death occurs during the first three years. Premiums are paid at the beginning of each year. Assume r=.02 (annual compounding), and that one year probabilities of death at age 70, 71 and 72 are 0.024, 0.026, 0.028. What is the minimum annual premium?

A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year old...

A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year old male for $350. The probability this person survives the year is 0.98734. Compute the expected value of this policy to the insurance company to the nearest 0.01.

Suppose a life insurance company sells a $200,000 one-year term life insurance policy to a 23-year-old...

Suppose a life insurance company sells a $200,000 one-year term life insurance policy to a 23-year-old female for $190. The probability that the female survives the year is 0.999594. Compute and interpret the expected value of this policy to the insurance company.

Suppose a life insurance company sells a $160,000 one-year term life insurance policy to a 25-year-old...

Suppose a life insurance company sells a $160,000 one-year term life insurance policy to a 25-year-old female for $280. The probability that the female survives the year is 0.9996420 Compute and interpret the expected value of this policy to the insurance company. The expected value is $nothing. (Round to two decimal places as needed.)

Suppose a life insurance company sells a $190,000 one-year term life insurance policy to a 24-year-old...

Suppose a life insurance company sells a $190,000 one-year term life insurance policy to a 24-year-old female for $200. The probability that the female survives the year is .999461. Compute and interpret the expected value of this policy to the insurance company.

Suppose a life insurance company sells a $190,000 one-year term life insurance policy to a 20-year-old...

Suppose a life insurance company sells a $190,000 one-year term life insurance policy to a 20-year-old female for $330. The probability that the female survives the year is 0.999502. Compute and interpret the expected value of this policy to the insurance company.

Life Insurance: Your company sells life insurance. You charge a 55 year old man $60 for...

Life Insurance: Your company sells life insurance. You charge a 55 year old man $60 for a one year, $100,000 policy. If he dies over the course of the next year you pay out $100,000. If he lives, you keep the $60. Based on historical data (relative frequency approximation) the average 55 year old man has a 0.9995 probability of living another year. (a) What is your expected profit on this policy? $ (b) What is an accurate interpretation of...

An insurance company charges a 21-year-old male a premium of $500 for a one-year $ 100...

An insurance company charges a 21-year-old male a premium of $500 for a one-year $ 100 comma 000 life insurance policy. A 21-year-old male has a 0.9985 probability of living for a year. a. From the perspective of a 21-year-old male (or his estate), what are the values of the two different outcomes? The value if he lives is nothing dollars. The value if he dies is nothing dollars. b. What is the expected value for a 21-year-old male who...

Life Insurance:A life insurance company sells a$250,000 1-year term life policy to a 20-year-old...

Life Insurance:A life insurance company sells a $250,000 1-year term life policy to a 20-year-old male for $350. According to the National Vital Statistics Report, the probability that the male survives the year is 0.998734.Please answer all questions and do not hand write your answers. Show your work or please leave the question for someone who can. Thank youa)Compute the expected value.b)Interpret the expected value of this policy to the insurance company.

chief Complaint: 40-year-old man with a cough and dyspnea. History: Joe Butt, a 40-year-old white male...

chief Complaint: 40-year-old man with a cough and dyspnea. History: Joe Butt, a 40-year-old white male with a 52-pack-year smoking history suffered from chronic bronchitis. For the last several months he has been on an antibiotics treatment. Three weeks ago, his otherwise normal smoker’s cough started producing bloody sputum ("hemoptysis"). In the past week Joe has become increasingly short of breath ("dyspnea"). A routine chest X-ray revealed a couple of quarter-sized opacities in his right lung around the alveoli. Bronchoscopic...

Question