Mathematics, 12.02.2021 16:30 NathanFrase6770
Avicenna, a major insurance company, offers five-year life insurance policies to 65-year-olds. If the holder of one of these policies dies before the age of 70, the company must pay out $26,500 to the beneficiary of the policy, Executives at Avicenna are considering offering these policies for $497 each. Suppose that for each holder of a policy there is a 2% chance that they will die before the age of 70 and a 98% chance they will live to the age of 70.
If the executives at Avicenna know that they will sell many of these policies, should they expect to make or lose money from offering them? How much?
To answer, take into account the price of the policy and the expected value of the amount paid out to the beneficiary.
Avicenna can expect to make money from offering these policies. In the long run, they should expect to make dollars on each policy sold,
Avicenna can expect to lose money from offering these policies. In the long run, they should expect to lose dollars on each policy sold
Avicenna should expect to neither make nor lose money from offering these policies.
Answers: 2
Mathematics, 21.06.2019 22:30
(a.s."similarity in right triangles"solve for xa.) 10b.) 20c.) 14.5d.) [tex] 6\sqrt{3} [/tex]
Answers: 1
Mathematics, 21.06.2019 23:50
What is the probably of getting heads when poing a coin and getting a number greater than or equal to 5 when rolling a single diea) 1/6b) 1/3c) 1/4d) 1/12
Answers: 2
Mathematics, 22.06.2019 02:30
Flvs question 3 exam: 04.10 segment one exam part two what is the measure of angle x? picture is shown
Answers: 1
Mathematics, 22.06.2019 03:30
You work for a landscape company that just got a contract to re-mulch a park. the area that needs mulching is 30 feet by 60 feet. they want a 3 inch layer of much on the area. the company has bags of mulch that cover 2 cubic yards that cost $4.00 per bag. how much will it cost the consumer just in materials to re-mulch the area (round to the nearest dollar)?
Answers: 3
Avicenna, a major insurance company, offers five-year life insurance policies to 65-year-olds. If th...
Health, 26.09.2019 19:30
English, 26.09.2019 19:30
History, 26.09.2019 19:30
Biology, 26.09.2019 19:30
Chemistry, 26.09.2019 19:30
Social Studies, 26.09.2019 19:30
Computers and Technology, 26.09.2019 19:30
Biology, 26.09.2019 19:30
Mathematics, 26.09.2019 19:30
Mathematics, 26.09.2019 19:30