The probability that a 22-year-old female in the U.S. will die within one year is approximately 0.00044. If an insurance company sells a one-year, $25,000 life insurance policy to such a person for $155, what is the company's expectation? (Round your answer to the nearest dollar.)
In: Statistics and Probability
The probability that a 22-year-old female in the U.S. will die within one year is approximately 0.00044. If an insurance company sells a one-year, $30,000 life insurance policy to such a person for $95, what is the company's expectation? (Round your answer to the nearest dollar.)
In: Statistics and Probability
The probability that an 80-year-old male in the U.S. will die within one year is approximately 0.069941. If an insurance company sells a one-year, $12,000 life insurance policy to such a person for $425, what is the company's expectation? (Round your answer to two decimal places.)
In: Economics
The probability that a 30-year-old male in the U.S. will die
within one year is about 0.00142. An insurance company is preparing
to sell a 30-year-old male a one-year, $40,000 life insurance
policy. How much should it charge for its premium in order to have
a positive expectation for the policy? (Round your answer to the
nearest dollar.)
In: Statistics and Probability
In: Accounting
There is a 0.9983 probability that a randomly selected 28-year-old male lives through the year. A life insurance company charges $191 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out 90,000 as a death benefit. Complete parts (a) through (c) below.
a. From the perspective of the 28-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving?
The value corresponding to surviving the year is $ _____?
The value corresponding to not surviving the year is $_____?
(Type integers or decimals. Do not round.)
If the 28-year-old male purchases the policy, what is his expected value?
The expected value is $______?
(Round to the nearest cent as needed.)
Can the insurance company expect to make a profit from many such policies? Why?
(yes or no ) ______?because the insurance company expects to make an average profit of $____? on every 28 year old male it insures for 1 year
(Round to the nearest cent as needed.)
In: Statistics and Probability
There is a
0.99890.9989
probability that a randomly selected
2929-year-old
male lives through the year. A life insurance company charges
$189189
for insuring that the male will live through the year. If the male does not survive the year, the policy pays out
$110 comma 000110,000
as a death benefit. Complete parts (a) through (c) below.
a. From the perspective of the 29-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving?
The value corresponding to surviving the year is ......?????
The value corresponding to not surviving the year is ....?????
b. If the 29-year-old male purchases the policy, what is his expected value? The expected value is .......?
c. Can the insurance company expect to make a profit from many such policies? Yes/no because the insurance company expects to make an average profit of ......????? on every 29 dash year dash old 29-year-old male it insures for 1 year.
In: Statistics and Probability
There is a 0.9985 probability that a randomly selected 28-year-old male lives through the year. A life insurance company charges $188 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $100 comma 000 as a death benefit. Complete parts (a) through (c) below.
a. From the perspective of the 28-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving?
The value corresponding to surviving the year is $___
The value corresponding to not surviving the year is $___
(Type integers or decimals. Do not round.)
b. If the 28-year-old male purchases the policy, what is his expected value?
The expected value is $___
(Round to the nearest cent as needed.)
c. Can the insurance company expect to make a profit from many such policies? Why?
Yes? Or No? because the insurance company expects to make an average profit of $___
nothing on every 28 dash year dash old male it insures for 1 year.
(Round to the nearest cent as needed.)
In: Statistics and Probability
There is a 0.9985 probability that a randomly selected 32-year-old male lives through the year. A life insurance company charges $193 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $110,000 as a death benefit. Complete parts (a) through (c) below.
a. From the perspective of the 32-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving?
The value corresponding to surviving the year is $__
The value corresponding to not surviving the year is $__
(Type integers or decimals. Do not round.)
b. If the 32-year-old male purchases the policy, what is his expected value?
The expected value is $__
(Round to the nearest cent as needed.)
c. Can the insurance company expect to make a profit from many such policies? Why?
YES/NO because the insurance company expects to make an average profit of $__ on every 32-year-old male it insures for 1 year.
(Round to the nearest cent as needed.)
In: Statistics and Probability
An Enterprise Fund that operates on a calendar year basis pays $18,000 for a three-year insurance policy on January 1, 2008. In its financial statements for the year ended December 31, 2008, the Enterprise Fund should report:
a. an expense of $6,000; and an asset of $12,000
b. an expense of $18,000
c. an expense of $12,00; and an asset of $6,000
d. an asset of $18,000; and an expense of $6,000
In: Accounting